| Case ID |
e144765c-8523-4f59-b1c6-e38be31019cf |
| Body |
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| Case Number |
FEA No. 27/1B/2020 |
| Decision Date |
Jan 03, 2022 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal Inland Revenue ruled in favor of the appellant, M/S. Zarai Taraqiati Bank Limited, stating that the imposition of an extra sales tax of 5% on the electricity bill for June 2020 was unlawful. The tribunal highlighted that there was no valid notification specifying the procedure for levying extra sales tax during the relevant period. As such, the appellant's claim was upheld, and the extra tax was deemed to have been incorrectly applied. The tribunal emphasized the principle that tax notifications cannot have retrospective effects, aligning with established legal precedents. |
| Summary |
In the case of M/S. Zarai Taraqiati Bank Limited vs. Commissioner Inland Revenue (Zone-II), the Appellate Tribunal Inland Revenue addressed the issue of an extra sales tax imposed on the electricity bill of the appellant for June 2020. The tribunal found that the Federal Government had not issued any notification that outlined the proper procedures for imposing such a tax after the cancellation of a previous notification in June 2019. The appellant, a regular electricity consumer for textile production, contested the extra tax charge of 5%, claiming it was unlawfully applied. The tribunal ruled in favor of the appellant, affirming that the principle of non-retroactivity of tax notifications was paramount. This case underscores the importance of adherence to legal protocols in tax imposition, emphasizing that taxpayers with active status in the Federal Board of Revenue's records should not be subjected to additional taxes without proper legal backing. Notably, the tribunal referenced prior judgments reinforcing these principles, thereby establishing a clear precedent regarding the application of sales tax regulations. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
COMMISSIONER INLAND REVENUE,
M/S. ZARAI TARAQIATI BANK LIMITED
|
| Judges |
MR. M.M. AKRAM, JUDICIAL MEMBER,
MR. MUHAMMAD IMTIAZ, ACCOUNTANT MEMBER
|
| Lawyers |
Barrister Muhammad Abubaker,
Mr. Qadeer Ahmed, ITP,
Mr. Aamir Ilyas, DR
|
| Petitioners |
M/S. ZARAI TARAQIATI BANK LIMITED
|
| Respondents |
COMMISSIONER INLAND REVENUE (Zone-II), LTU, ISLAMABAD
|
| Citations |
2022 SLD 707,
2022 PTCL 281
|
| Other Citations |
PTCL 2000 CL 25
|
| Laws Involved |
Sales Tax Act, 1990,
Federal Excise Act, 2005,
Constitution of Pakistan, 1973,
Customs Act, 1969
|
| Sections |
11,
14,
14(2),
10A,
179
|