| Case ID |
e7ca09c4-c66c-4962-8270-d5e7a513fd19 |
| Body |
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| Case Number |
S.T.A. No.729/LB of 2004 |
| Decision Date |
Sep 16, 2008 |
| Hearing Date |
Sep 10, 2008 |
| Decision |
The Appellate Tribunal accepted the appeal of the appellant, FARHANUDDIN, and set aside the additional demand raised by the department. The Tribunal found that the central excise duty should be based on the retail price fixed by the manufacturer, which was legally declared and published. The Tribunal noted that the department's actions were arbitrary and not in accordance with the law, as it had relied on insufficient evidence from a market survey that did not represent the true pricing of the products. The case emphasized that manufacturers cannot be held accountable for retailers’ pricing practices as long as they comply with the law regarding the declaration of retail prices. |
| Summary |
In the case of S.T.A. No.729/LB of 2004, the Appellate Tribunal Inland Revenue dealt with an appeal regarding the determination of central excise duty under the Central Excise Act, 1944. The appellant, FARHANUDDIN, contested an Order-in-Original that mandated the payment of excise duties based on a market retail price claimed by the department, which was higher than the price fixed by the appellant. The Tribunal ruled that the appellant had appropriately fixed the retail price and had not violated any laws. The decision highlighted the principle that manufacturers should not be liable for the actions of retailers in pricing their products. This ruling is significant for businesses as it clarifies the responsibilities of manufacturers versus retailers regarding pricing and taxation under excise laws. The case also reiterates the necessity for the department to provide substantial evidence when making demands for additional taxes, reinforcing the legal protections available to manufacturers in similar situations. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
FARHANUDDIN,
PAKISTAN TELECOMMUNICATION COMPANY LTD
|
| Judges |
DR. RIAZ MEHMOOD, MEMBER (JUDICIAL),
SAEED AKHTAR, MEMBER (TECHNICAL)
|
| Lawyers |
Sardar Ahmad Jamal Sukhera,
Taqueer Zaman
|
| Petitioners |
FARHANUDDIN
|
| Respondents |
PAKISTAN TELECOMMUNICATION COMPANY LTD
|
| Citations |
2009 SLD 1430,
2009 PTD 320,
(2008) 98 TAX 217
|
| Other Citations |
2000 PTD 353,
PLD 1984 SC 86
|
| Laws Involved |
Central Excise Act, (I of 1944),
Central Excise Rules, 1944
|
| Sections |
4(2),
3B,
210
|