| Case ID |
5cb67552-80c2-4b80-92fb-df9d94c89903 |
| Body |
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| Case Number |
S.T.A. No. 2644/LB of 2001 |
| Decision Date |
May 13, 2006 |
| Hearing Date |
May 11, 2006 |
| Decision |
The Customs, Excise and Sales Tax Appellate Tribunal has set aside the impugned Order-in-Original No. 188/2001, directing the calculation of additional tax at the rate of 1% of the tax due per month instead of the previously adjudged amount. The Tribunal found no merit in the arguments presented by the respondent and allowed the application of a lower rate of additional tax that is applicable today. This decision acknowledges the beneficial amendments made to the Sales Tax Act, 1990, which facilitate a fairer calculation of additional tax for late payments. The case highlights the importance of timely tax payments and adherence to the legal provisions to avoid penalties and additional tax liabilities. |
| Summary |
This case revolves around the appeal filed by M/s Flying Paper Industries against the Order-in-Original No. 188/2001, where they were directed to pay additional tax due to late submissions of sales tax for the periods of November 1997 and March 1998. The Tribunal found that the initial order imposed a significant penalty and additional tax amount based on late payment, which was contested by the appellant on grounds of insufficient opportunity to defend their case and reliance on a court order for their tax deposits. The Tribunal ultimately set aside the previous decision, allowing for a more favorable calculation method for the additional tax owed, thereby emphasizing the evolving nature of tax law and the need for equitable treatment of taxpayers. The ruling serves as a precedent for similar cases involving late tax payments and the application of current tax rates for additional tax liabilities, making it a significant point of reference in tax law litigation. |
| Court |
Customs, Excise and Sales Tax Appellate Tribunal
|
| Entities Involved |
M/s Flying Paper Industries,
Collectorate of Customs, Sales Tax & Central Excise (Adjudication), Lahore
|
| Judges |
Saeed Akhtar (Member Technical),
Ch. Farrukh Mahmud (Member Judicial)
|
| Lawyers |
Khawaja Zia Ullah,
Rana Muhammad Afzal
|
| Petitioners |
M/s Flying Paper Industries
|
| Respondents |
Not available
|
| Citations |
2009 SLD 275 = (2009) 99 TAX 186
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
33,
33(2)(cc),
34
|