| Case ID |
f98de5a7-57d1-44f2-94ee-e5e8d607d406 |
| Body |
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| Case Number |
Civil Petition No. 757-L of 2021 |
| Decision Date |
Feb 03, 2022 |
| Hearing Date |
Feb 03, 2022 |
| Decision |
The Supreme Court of Pakistan upheld the findings of the Appellate Tribunal, emphasizing that it is the final authority for determining facts in tax matters. The court stated that the High Court cannot disturb the Tribunal's factual findings unless a question of law is raised. In this case, the petitioner department failed to establish that the invoices issued by the suppliers were fake or that sales tax was not deposited. As such, the appeal against the Tribunal's order was dismissed, and the petitioner was denied the refund claim because the necessary legal question regarding the validity of the invoices had not been properly raised. |
| Summary |
In the case of Civil Petition No. 757-L of 2021, the Supreme Court of Pakistan addressed critical issues regarding the Sales Tax Act, 1990 and the authority of the Appellate Tribunal in tax matters. The court highlighted that the Tribunal is the final fact-finding body, and its conclusions should only be challenged on the basis of legal questions. The case stemmed from a dispute where the petitioner, the Commissioner of Inland Revenue, sought to deny a refund claim based on invoices from suppliers. The core issue revolved around the legality of these invoices and whether the sales tax had been deposited. The Supreme Court ultimately ruled in favor of the respondents, reinforcing the Tribunal's findings and the necessity of raising specific legal questions to challenge factual determinations effectively. This case underscores the importance of adhering to procedural norms in tax litigation and the limitations imposed on the High Court's review authority regarding factual findings. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
COMMISSIONER OF INLAND REVENUE, LAHORE,
MESSRS SARGODHA SPINNING MILLS (PVT.) LTD. FAISALABAD
|
| Judges |
SYED MANSOOR ALI SHAH, JUSTICE,
QAZI MUHAMMAD AMIN AHMED, JUSTICE
|
| Lawyers |
Sarfraz Ahmed Cheema, Advocate Supreme Court,
Naeem Hassan, Secretary (Lit.) FBR,
Anis-ur-Rehman, Legal Advisor
|
| Petitioners |
COMMISSIONER OF INLAND REVENUE, LAHORE
|
| Respondents |
OTHERS,
MESSRS SARGODHA SPINNING MILLS (PVT.) LTD. FAISALABAD
|
| Citations |
2022 SLD 1048,
2022 SCMR 1082
|
| Other Citations |
Messrs Shah Nawaz v. Commissioner of I.T. 1969 SCMR 123,
Commissioner of I.T. v. Messrs Smith, Kline and French 1991 SCMR 2374,
Commissioner of I.T. v. Messrs Farrokh Chemical 1992 SCMR 523,
Ibrahim Ishaq v. Commissioner of I.T. 1993 SCMR 287,
Messrs Irum Ghee Mills v. I.T. A.T. 2000 SCMR 1871,
Commissioner of I.T. v. Muhammad Ismail, Co. 1986 SCMR 968,
Oriental investment Co. v. Commissioner of I.T. 1972 PTD 181,
Messrs Mohammad Akbar v. I.T.A.T. 1972 SCMR 409,
Messrs F.M.Y. Industries v. Deputy Commissioner I. T. 2014 SCMR 907,
Messrs PTV Corporation Ltd. v. Commissioner Inland Revenue 2017 SCMR 1136,
Messrs Squibb Pakistan v. Commissioner of I.T. 2017 SCMR 1006
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
2(14),
7,
8,
8A,
10,
22,
26,
36,
46,
47
|