Taxpayer was imposed upon a liability to pay sales tax on account of acquisition of taxable goods for construction of immovable property----Commissioner (Appeals) upheld the imposition of tax---Appellate Tribunal party allowed the appeal filed by taxpayer---Validity----Section 3 of the Sales Tax Act, 1990, charge tax on the supplier of goods and not on the purchaser-----Taxing the purchaser of goods was a flagrant violation of the charging provisions of the Sales Tax Act, 1990----Reference application was decided against the department.
Construction of immovable property---Scope----Contract of construction of immovable property is indivisible and involves no sale of goods----In such contract, goods pass on as accession immovable property and no supply of goods is involved.
| Court | Year | Appellant vs Respondent | Sections | Topic |
|---|---|---|---|---|
| Lahore High Court | 2022 | COMMISSIONER INLAND REVENUE Vs DESCON ENGINEERING LIMITED |
Sales Tax Act (VII of 1990) 2(12), 2(35), 2(41), 3, 3(1), 3(1)(a), 6, 11, 22, 23, 26, 47 |
Liability of purchaser of goods |