| Case ID |
f6aba9fd-34e7-4a99-97bb-7434aa3526fc |
| Body |
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| Case Number |
D-3830 of 2014 |
| Decision Date |
Nov 22, 2014 |
| Hearing Date |
Sep 23, 2014 |
| Decision |
The Sindh High Court ruled in favor of the petitioners, quashing the FIR registered against them by the Customs authorities and setting aside the retrospective cancellation of their Provisional Certificate issued under S.R.O. 670(I)/2013. The court stated that the Customs authorities lacked the jurisdiction to register the FIR concerning alleged misuse of the zero-rating facility under the Sales Tax Act, as such matters fall under the authority of the Commissioner Inland Revenue. The court emphasized that the petitioners were not afforded a proper opportunity to be heard before any adverse actions were taken against them, highlighting the importance of due process in administrative and judicial proceedings. The decision reinforces the principle that tax matters should be handled within the framework of established laws and regulations, ensuring fairness and justice for all parties involved. |
| Summary |
In this landmark case, the Sindh High Court addressed the jurisdictional boundaries between Customs authorities and the Inland Revenue Department regarding the application of the Sales Tax Act, specifically in relation to the zero-rating facility for sales tax exemptions. The petitioners, engaged in the dairy business, challenged the validity of an FIR accusing them of lacking the in-house manufacturing capabilities required for the zero-rating facility. The court found that the Customs authorities acted beyond their jurisdiction, as the enforcement of tax laws and recovery mechanisms are the responsibility of the Inland Revenue Department. This case underscores the significance of adhering to procedural fairness and the right to a fair hearing in administrative actions, especially in tax-related matters. The ruling serves as a precedent for future cases involving similar jurisdictional disputes and the enforcement of tax laws. |
| Court |
Sindh High Court
|
| Entities Involved |
RELIABLE ASSOCIATES,
REAL MILK
|
| Judges |
AQEEL AHMED ABBASI,
MUHAMMAD JUNAID GHAFFAR
|
| Lawyers |
Zain A. Jatoi,
Azhar Nawab Rizvi,
Dilawar Hussain,
M. Khalil Dogar,
Kashif Nazeer,
Ashiq Ali Anwar Rana,
Iqbal Khurram,
Samad,
M. Sarfraz Ali Metlo,
Mrs. Masoods Siraj,
Khalid Mahmood Dhoon
|
| Petitioners |
others,
MUHAMMAD MEASUM
|
| Respondents |
others,
FEDERATION OF PAKISTAN through Secretary
|
| Citations |
2015 SLD 151,
2015 PTD 702,
2015 PTCL 704
|
| Other Citations |
2000 SCMR 122,
2002 SCMR 1076,
2009 PTD 992,
Constitutional Petition No.D-216 of 2013,
Constitutional Petition No.3337 of 2013,
2013 PTD 821,
PTCL 2007 CL 71,
1995 MLD 615
|
| Laws Involved |
Sales Tax Act, 1990,
Criminal Procedure Code (V of 1898),
Constitution of Pakistan, 1973
|
| Sections |
4,
561-A,
199
|