| Case ID |
e28ea863-3994-4e26-817a-423b1fe2ce53 |
| Body |
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| Case Number |
Civil Petitions No.1842-L & 1843-L of 2022 |
| Decision Date |
Nov 11, 2022 |
| Hearing Date |
Nov 11, 2022 |
| Decision |
The Supreme Court of Pakistan upheld the decision of the Lahore High Court dismissing the Excise Tax References filed by the petitioner department. The Court ruled that the original show cause notice did not adequately inform the respondent company of the allegations against them regarding the Federal Excise Duty on local supplies of white crystalline sugar. The Court emphasized the importance of due process and fair trial, noting that the failure to specify allegations in the show cause notice violated the respondent's rights under Articles 4 and 10A of the Constitution. The Court found no grounds to challenge the Tribunal's factual determinations, affirming that the petitioner department had not provided sufficient evidence to dispute the Tribunal's findings. Consequently, the petitions were dismissed, reinforcing the principle of fair hearing in tax matters. |
| Summary |
This case revolves around the allegations made by the Commissioner Inland Revenue against M/S RYK Mills regarding the short levy of Federal Excise Duty (FED) on local supplies of white crystalline sugar. The petitioner department claimed that RYK Mills charged only 0.5% instead of the required 8%, leading to a shortfall in duty collection. The legal proceedings involved multiple appeals and rectification applications, eventually reaching the Supreme Court. The Court underscored the necessity of a proper show cause notice, highlighting the principles of natural justice and the right to a fair trial. The judgment emphasized that without clear allegations, the adjudication process becomes flawed. The decision reinforced the importance of due process in tax matters, ensuring that parties are given a fair opportunity to respond to allegations against them. The ruling serves as a critical reference for similar cases in taxation and administrative law, stressing the need for transparency and fairness in legal proceedings. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
|
| Judges |
UMAR ATA BANDIAL, C.J.,
SYED MANSOOR ALI SHAH,
ATHAR MINALLAH,
SYED HASAN AZHAR RIZVI
|
| Lawyers |
Ms. Saba Saeed, ASC,
Mr. Shehbaz Butt, ASC,
Muhammad Hassan Ali, Law Clerk
|
| Petitioners |
COMMISSIONER INLAND REVENUE
|
| Respondents |
M/S RYK MILLS
|
| Citations |
2022 SLD 1535,
2023 SCMR 1856,
(2023) 128 TAX 461,
2024 PTCL 322
|
| Other Citations |
Not available
|
| Laws Involved |
Federal Excise Act, 2005,
Constitution of Pakistan, 1973,
Sales Tax Act, 1990
|
| Sections |
8,
10,
14,
14A,
33,
4,
10A,
185,
22(1)(a)(c),
22(1)(e),
73
|