| Case ID |
eb949a21-acaf-43da-874a-5135b0fd7835 |
| Body |
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| Case Number |
Sales Tax Reference No. 09-P of 2017 |
| Decision Date |
Feb 24, 2022 |
| Hearing Date |
Feb 17, 2022 |
| Decision |
The High Court upheld the decision of the Appellate Tribunal Inland Revenue, which directed the department to recover the sales tax amount from the supplier and refund it to the buyer. The Court found that the buyer had fulfilled its obligations under section 73 of the Sales Tax Act, 1990, while the supplier failed to deposit the sales tax in the government treasury. The Court dismissed the reference, agreeing with the Tribunal's reasoning that the buyer was not entitled to a tax refund due to the supplier's non-compliance. The judgment emphasized the importance of compliance with tax regulations by suppliers for buyers to claim refunds. |
| Summary |
This case involves a dispute over the refund of sales tax under the Sales Tax Act, 1990. The Commissioner Inland Revenue filed a reference against the decision of the Appellate Tribunal that ordered the recovery of sales tax from the supplier and subsequent refund to the buyer. The key legal issues revolved around the compliance of the supplier in depositing sales tax in the government treasury and the buyer's adherence to payment regulations. The Court found that while the buyer had met its requirements under section 73, the supplier had not deposited the sales tax, thus denying the buyer's refund claim. This case highlights the critical nature of compliance in tax matters and serves as a precedent for similar disputes. The decision underscores the necessity for suppliers to fulfill their tax obligations to enable buyers to successfully claim refunds. |
| Court |
Peshawar High Court
|
| Entities Involved |
Gadoon Textile Mills
|
| Judges |
JAN KHATTAK,
KAMRAN HAYAT MIANKHEL
|
| Lawyers |
Shahid Qayyum Khattak,
Ishtiaq Ahmad (Junior)
|
| Petitioners |
COMMISSIONER INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR
|
| Respondents |
MESSRS GADOON TEXTILE MILLS, GADOON AMAZAI SWABI AND ANOTHER
|
| Citations |
2022 SLD 2258,
2022 PTD 1776,
(2023) 128 TAX 281,
2024 PTCL 37
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
8,
8A,
73,
11(2),
66,
10(4),
8(1),
8(ca),
26(5)
|