| Case ID |
d55536d4-e5ce-46ff-a377-ddaeb6175185 |
| Body |
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| Case Number |
STA No. 1107/LB/2014 |
| Decision Date |
Nov 11, 2014 |
| Hearing Date |
Nov 11, 2014 |
| Decision |
The Appellate Tribunal ruled that the taxpayer, MS. PAUL LEATHER INDUSTRIES, is a manufacturer of Rexene and the contravention report issued by the Deputy Commissioner Inland Revenue (DCIR) was based on conjectures and surmises. The Tribunal determined that the second show cause notice issued against the taxpayer was illegal and void, emphasizing that there is no provision in law that allows for a second audit of the same party for the same period. The Tribunal also affirmed that the taxpayer had provided sufficient documentation to support their claims of zero-rated supplies, which were made in compliance with the Sales Tax Act. The order of the Commissioner Inland Revenue (Appeals) was vacated and that of the DCIR was canceled, allowing the taxpayer's appeal and affirming their rights under the law. |
| Summary |
In the case of MS. PAUL LEATHER INDUSTRIES vs. C.I.R., ZONEX, R.T.O., the Appellate Tribunal Inland Revenue addressed significant issues related to the Sales Tax Act, 1990. The Tribunal scrutinized the validity of a second show cause notice issued to the taxpayer, which was based on a contravention report that alleged inadmissible input tax claims on fake zero-rated supplies. The Tribunal concluded that the DCIR's actions were not legally justified as the law does not permit a second audit for the same tax period and taxpayer. The Tribunal emphasized the importance of adhering to legal procedures and upheld the taxpayer's rights, highlighting that the taxpayer had provided adequate evidence of their manufacturing activities and compliance with tax regulations. This case underscores the critical nature of due process in tax assessments and the protection of taxpayer rights under the Sales Tax Act, 1990. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
MS. PAUL LEATHER INDUSTRIES,
C.I.R., ZONEX, R.T.O.
|
| Judges |
Jawaid Masood Tahir Bhatti,
Fiza Muzaffar
|
| Lawyers |
Ayesha Qazi,
Tahir Mehmood,
Miss Sumaira Kharshed
|
| Petitioners |
MS. PAUL LEATHER INDUSTRIES
|
| Respondents |
C.I.R., ZONEX, R.T.O.
|
| Citations |
2015 SLD 1787,
(2015) 111 TAX 147,
2015 PTD 1438
|
| Other Citations |
2013 SCMR 85,
(1997) 76 Tax 5 (S.C. Pak.),
(2005) 91 Tax 312 (Trib.),
(2012) 106 Tax 24 (Trib.),
(2005) 91 Tax 75 (H.C. Kar),
Abida Rashid v. Secretary PLD 1995 Karachi 587,
Rashid Ahmad v. The State PLD 1972 SC 271,
Abdul Razzaq v. Muhammad Sharif PLD 1997 Lahore 1,
(2011) 104 Tax 6 (S. C. Pak.),
2003 SCMR 501
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
11,
13,
25,
33,
33(11),
33(11c),
34,
36(1),
38,
45A
|