Sales Tax (Case Laws)

Sales Tax (Case Laws)

Court Year Petitioner Law/Section Topic Case Law Citation/Ref. View
Inland Revenue Appellate Tribunal 2023 MESSRS TOWN CRIER (PVT.) LTD. FAISALABAD
Vs
THE COMMISSIONER INLAND REVENUE, ZONE-I RTO, FAISALABAD
Sales Tax Act (VII of 1990) 2(37), 3, 4, 11, 11(3), 26(1), 33, 73 Zero-rating | benefit of zero-rating

Assessment of tax and recovery of tax not levied or short levied or erroneously refunded---Zero-rating---Scope---Appellant showed zero- rated supplies of goods to various registered persons---Cross-matching of the sales tax returns of Read More...


2023 PTD 552
Sindh High Court 2023 SYED ATIF SALMAN HASHMI AND ANOTHER
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY REVENUE, EX-OFFICIO CHAIRMAN FBR AND OTHERS
Sales Tax Act (VII of 1990) 3, 3(1A), 24 bogus tax returns/ quashed FIR

Quashing of criminal proceedings without petitioner approaching Trial Court---Recovery of bogus tax returns Initiation of proceedings---Limitation---Petitioner was accused of committing fraud in receiving bogus tax returns---Petitioner Read More...


2023 PTD 666
Sindh High Court 2023 SYED ATIF SALMAN HASHMI AND ANOTHER
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY REVENUE, EX-OFFICIO CHAIRMAN FBR AND OTHERS
Criminal Procedure Code 1898 S.249-A, 365-K & 561-A Constitution of Pakistan, Art. 199 FIR/Trial/ miscarriage of justice

Constitution of Pakistan, Art. 199- Constitutional petition-- Quashing of proceedings---Inherent jurisdiction of High Court-Scope---When a criminal matter is pending before a Trial Court and interim challan has been submitted, under Read More...


2023 PTD 666
Lahore High Court 2023 COMMISSIONER INLAND REVENUE, LEGAL ZONE, LTO, MULTAN
Vs
MESSRS USMAN TRADER LINKERS, MULTAN
Sales Tax Act (VII of 1990) 2(17), 47 Interpretation of statutes / Fiscal statutes

Words or and --Scope--In legislative instruments/provisions  word  or is employed in disjunctive sense (means it separates things) and word "and" in conjunctive sense (means it combines things)---In certain cases, words and and Read More...


2023 PTD 679
Lahore High Court 2023 COMMISSIONER INLAND REVENUE, LEGAL ZONE, LTO, MULTAN
Vs
MESSRS USMAN TRADER LINKERS, MULTAN
Sales Tax Act (VII of 1990) 2(17), 47 Interpretation of statutes / Fiscal statutes

Word "or"--Scope-Word "or" appearing in which means that words owns and has his own manufacturing facility vise to S.2(17) of Sales Tax Act, 1990, is used in disjunctive sense, have been used to convey different Read More...


2023 PTD 679
Lahore High Court 2023 COMMISSIONER INLAND REVENUE, LEGAL ZONE, LTO, MULTAN
Vs
MESSRS USMAN TRADER LINKERS, MULTAN
Sales Tax Act 1990 S.2(17) & 47 Sales Tax Rules, 2006, Rr.7(4) & 29(1)(b) Manufacturer-cum-exporter / Commercial Exporter

Reference-Commercial Exporter-Expeditious Refund System-- Particulars of registration, change of---Commissioner Inland Revenue---Suo motu powers---Respondent entity was registered as "Manufacturer-cum-exporter" for the purposes of tax Read More...


2023 PTD 679
Lahore High Court 2023 COMMISSIONER OF INLAND REVENUE, LEGAL DIVISION, REGIONAL TAX OFFICE, LAHORE
Vs
MESSRS RAFAQAT MARKETING, LAHORE THROUGH CHAIRMAN AND ANOTHER
Sales Tax Act 1990 S. 21(3), 47 & 73 Sales Tax Rules, 2006, R. 12 (5) Refund claims-Scrutiny

Reference--- Refund claims-Scrutiny-Factual controversy---Dispute was with regard to invoices issued by suppliers who had either been declared blacklisted or were non-existent with "registration suspended" status--- Show-Cause Notices Read More...


2023 PTD 720
Peshawar High Court 2023 THE COMMISSIONER INLAND REVENUE, REGIONAL TAX OFFICE, ABBOTTABAD AND ANOTHER
Vs
MESSRS SAIM TRADERS AND ANOTHER
Sales Tax Act 1990 S.3, 47 Fifth Schedule Constitution of Pakistan, Art. 247 Exemption from duty and taxes

Exemption from duty and taxes... Applicability--Dispute was with regard to exemption granted to respondent tax-payer on the plea that goods were supplied by Norwegian Refugee Council to internally displaced persons---Any person could be Read More...


2023 PTD 763
Sindh High Court 2023 DIGRI SUGAR MILLS LIMITED
Vs
THE ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE AND ANOTHER
Sales Tax Act (VII of 1990) 2(25), 3(1A), 11, 33 Further tax/ S. 3(1A) unequivocally imposed the obligation of further

Assessment of tax and recovery of tax not levied or short levied or erroneously refunded---Further tax--- Registered person-Scope---Show-cause notice was issued to the applicant alleging supplies made to unregistered persons and Read More...


2023 PTD 825
Sindh High Court 2023 DIGRI SUGAR MILLS LIMITED
Vs
THE ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE AND ANOTHER
Sales Tax Act (VII of 1990) 2(25), 3(1A), 11, 33 Administration of justice/Courts

Courts ought to abstain from deciding larger question, if a case could be decided on narrower grounds----It is preferred for the courts to confine determination to question pivotal for the determination of a case. Read More...


2023 PTD 825
Lahore High Court 2023 COMMISSIONER INLAND REVENUE, LEGAL ZONE, LARGE TAXPAYERS OFFICE, LAHORE
Vs
MESSRS SAPPHIRE DAIRIES (PVT.) LTD.
Sales Tax Act (VII of 1990) 2(39), 2(41), 2(48), 3, 13, 47 taxable supplies

Exempted goods----Import and supplies-----Scope----Authorities contended that benefit of notification SRO No.549(I)/2008, dated Read More...


2023 PTD 44
Sindh High Court 2023 SAIF-UL-MULK
Vs
THE STATE
Sales Tax Act (VII of 1990) 33(11)(c), 33(13) Bail/Requirement of cash surety

Accused was granted bail with the consent of Special Prosecutor (Customs) subject to the deposit of 25% of the alleged evaded Read More...


2023 PTD 143
Sindh High Court 2023 SAIF-UL-MULK
Vs
THE STATE
Sales Tax Act (VII of 1990) 33(11)(c), 33(13) Bail/ Deposit instead of recognizance

Deposit instead of recognizance ----Scope-----Criminal court, at the time of granting bail, cannot Read More...


2023 PTD 143
Sindh High Court 2023 COMMISSIONER INLAND REVENUE
Vs
MESSRS NEW ALLIED ELECTRONICS INDUSTRIES (PVT.) LTD.
Sales Tax Act, 1990 11, 11(3), 11(4), 32, 33(5), 34, 47 Refunded. erroneously.

Assessment of tax and recovery of tax not levied or short levied erroneously Read More...


2023 PTD 264
Supreme Court of Pakistan 2023 THE COMMISSIONER, INLAND REVENUE, KARACHI
Vs
MESSRS ATTOCK CEMENT PAKISTAN LIMITED, KARACHI
Sales Tax Act (VII of 1990) 7, 7(1), 66 Input tax, adjustment / beneficial provision

Input tax, adjustment of-Scope and nature-Section 7 of the Sales Tax Act, 1990 by nature is a beneficial provision of law Read More...


2023 PTD 320
Supreme Court of Pakistan 2023 THE COMMISSIONER, INLAND REVENUE, KARACHI
Vs
MESSRS ATTOCK CEMENT PAKISTAN LIMITED, KARACHI
Sales Tax Act (VII of 1990) 7, 7(1), 66 time limit/input tax

Whether any time limit for adjustment of input tax---Held, that section 7(1) of the Sales Tax Act, 1990 does not stipulate any Read More...


2023 PTD 320
Supreme Court of Pakistan 2023 THE COMMISSIONER, INLAND REVENUE, KARACHI
Vs
MESSRS ATTOCK CEMENT PAKISTAN LIMITED, KARACHI
Sales Tax Act (VII of 1990) 7, 7(1), 66 time limit/input tax

Import of new machinery and spare parts--Input tax, refund/adjustment of-Time and manner of claiming the adjustment of input Read More...


2023 PTD 320
Appellate Tribunal Inland Revenue 2023 THE CIR, RTO, PESHAWAR.
Vs
M/S. PESHAWAR ELECTRICITY SUPPLY COMPANY (PESCO), PESHAWAR.
Sales Tax Act (VII of 1990) 10, 10(3), 11, 36, 50A, 50B Refund claims/ processing

Refund of input tax---Scrutiny and processing refund claim---Scope---Registered person claimed refund of amounts of input tax Read More...


2023 PTD 332
Lahore High Court 2023 COMMISSIONER INLAND REVENUE, FAISALABAD.
Vs
M/S. ENGINEERS ASSOCIATED PRECAST (PVT.) LTD.
Law: Sales Tax Act (VII of 1990) 11, 11(3), 47, 47(1), 47(5) Limitation | Condonation of delay

Limitation... Condonation of delay, non-availing of---Authorities assailed order passed by Appellate Tribunal Inland Revenue without filing application for condonation of delay-----Reference application was barred by time for 03 months and 03 days---Office raised Read More...


2023 PTD 393
2022 PTCL 569
Supreme Court of Pakistan 2023 COLLECTOR OF CUSTOMS, MCC (E&C) CUSTOMS HOUSE, PESHAWAR AND ANOTHER
Vs
ZAIN UL ABIDIN AND OTHERS
Limitation 0 Condonation of delay

Condonation of delay---Scope---If decisions are assailed they should be done within the prescribed period, and it should not be assumed that delay would be condoned when there is no valid reason to condone the Read More...


2023 PTD 487
Peshawar High Court 2023 MESSRS NAFEES PLASTIC INDUSTRIES, BARA
Vs
THE CHIEF COMMISSIONER INLAND REVENUE, PESHAWAR AND 9 OTHERS
Sales Tax Act, 1990 Sixth Schedule, 151 2(2) concession provided by FBR

Port of clearance/-Determination/Petitioner company was aggrieved of denial of authorities to clear goods imported by petitioner at Karachi Port/Plea raised by petitioner company was that total import for financial year was less than Read More...


2023 PTD 488
Inland Revenue Appellate Tribunal 2023 COMMISSIONER INLAND REVENUE, RTO, SIALKOT
Vs
Messrs GENERAL FAN COMPANY (PVT.) LTD., GUJRAT
Sales Tax Act (VII of 1990) 46 & 40B right of appeal

Appeal to Appellate Tribunal /Scope/Department sought vacation of stay granted by the Tribunal wherein the operation of order passed by the Federal Board of Revenue (FBR) under S.40B of the Sales Tax Act, 1990, was suspended till the Read More...


2023 PTD 513
Supreme Court of Pakistan 2022 COMMISSIONER OF INLAND REVENUE
Vs
MESSRS MUGHAL BOARD INDUSTRY
Sales Tax Act (VII of 1990) 34A Amnesty notification | default surcharge

Illegally adjusted input tax---Default surcharge and penalties---Amnesty Scheme---Purpose of an amnesty scheme is to incentivize payment and collection of stuck-up revenue---Taxpayer who had made voluntary payment before the cut-off date under the amnesty scheme can Read More...


2022 PTD 434
Supreme Court of Pakistan 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 11, 21, 33, 34, 46, 73 Judgment

Judgment is an authority only in respect to what it decides, and only with regard to the proposition of law raised, in that case, and therefore point not argued before the Court cannot be considered to have been dealt with by its Read More...


2022 PTD 683
Inland Revenue Appellate Tribunal 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) Jurisdiction

Power vested in any authority can only be exercised by that authority, in default whereof, the entire action would be without jurisdiction, void ab initio and of no legal effect. 

Question of jurisdiction in forum is considered to be very important and Read More...


2022 PTD 783
Inland Revenue Appellate Tribunal 2022 MESSRS GRAVITY TRADING CO. HYDERABAD
Vs
COMMISSIONER INLAND REVENUE ZONE-I, RTO, HYDERABAD
Sales Tax Act (VII of 1990) S. 21(2) Term “Satisfied” and ‘committed tax fraud’

When term satisfaction is used for the purpose of judicial determination, it is necessary that nothing more nor less it should be bona fide and not actuated by malice, a fact and not a pretext and the same can be determined from all fact and circumstance of the Read More...


2022 PTD 799
Inland Revenue Appellate Tribunal 2022 MESSRS GRAVITY TRADING CO. HYDERABAD
Vs
COMMISSIONER INLAND REVENUE ZONE-I, RTO, HYDERABAD
Sales Tax Act (VII of 1990) S. 21(2) Deregistration | Blacklisting

Change of address---Tax payer was aggrieved of order passed by tax authorities under S. 21(2) of Sales Tax Act, 1990, whereby taxpayer was blacklisted-----Validity----Taxpayer sought through a letter restoration of its registration and had also informed to tax Read More...


2022 PTD 799
Sindh High Court 2022 QUALITY STEEL RE-ROLLING MILL, THROUGH LEGALLY AUTHORIZED OFFICER
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY REVENUE DIVISION, ISLAMABAD AND 7 OTHERS
Sales Tax Act (VII of 1990) 74-A, SRO No.583(I)/2017 (Jurisdiction)

[as inserted by Finance Act, 2017]---SRO No.583(I)/2017 dated 1-7-2017---Vires of notification---Variation in incidence of taxation---Federal Read More...


2022 PTD 39
Peshawar High Court 2022 M/S NEW MOHMAND STEEL MILLS THROUGH ATTORNEY
Vs
GOVERNMENT OF PAKISTAN THROUGH FEDERAL SECRETARY FINANCE AND REVENUE DIVISION, ISLAMABAD AND 6 OTHERS
Federal Excise Act, 2005 First Schedule, Table 1, entry No. 58 Reading Down

Constitution of Pakistan, Art.199---Constitutional petition---Amendment, vires of---Doctrine of “Reading Down”--- Applicability---Petitioners were Read More...


2022 PTD 254
Peshawar High Court 2022 M/S NEW MOHMAND STEEL MILLS THROUGH ATTORNEY
Vs
GOVERNMENT OF PAKISTAN THROUGH FEDERAL SECRETARY FINANCE AND REVENUE DIVISION, ISLAMABAD AND 6 OTHERS
Federal Excise Act, 2005 First Schedule, Table 1, entry No. 58 Exemption of Duties

Constitution of Pakistan, Art.199---Constitutional petition---Amendment, vires of---Doctrine of “Reading Down”--- Applicability---Petitioners were running their industrial units in erstwhile federally Administered Tribal Area Read More...


2022 PTD 254
Sindh High Court 2022 AMSONS TEXTILE MILLS (PVT.) LIMITED ATTORNEY
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY/CHAIRMAN AND 5 OTHERS
Sales Tax Act (VII of 1990) 4(d), 11-A, 33(5), 34(1), 45-B Zero Rating

Notification SRO 509(I)/2009 dated 09-07-2007 and SRO 1125 (I)/ 2011 dated 31-12-2011---Civil Procedure Code (V of 1908), S.11---Suit for Read More...


2022 PTD 212
Appellate Tribunal-Inland Revenue 2022 M/S MUKHTAR-UL-HAQ POWER LOOMS, TOBA TEK SINGH
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 2(5AB), 2(25), 2(14), 2(37), 3, 6, 7, 11, 14, 22, 23, 26, 33(13), 46 Sales Tax Liability

Documents relating to the income tax could not be made the basis for creating sales tax liability against any registered person without any Read More...


2022 PTD 207
Sindh High Court 2022 LOUIS DREYFUS COMPANY PAKISTAN (PVT.) LTD. THROUGH AUTHORIZED OFFICER
Vs
FEDERAL BOARD OF REVENUE THROUGH CHAIRMAN AND 2 OTHERS
Sales Tax Act (VII of 1990) 3, 8, 77 Adjustment / Refund

Sales Tax General Order No. 105/2019 dated 13.12.2019---Sales Tax Liability---Adjustment/refund of sales tax paid under special procedures---Scope---Petitioner, an importer of palm oil, sought input tax adjustment for Read More...


2022 PTD 205
Inland Revenue Appellate Tribunal 2022 MESSRS SHAHPOSH GARMENTS, GUJRANWALA
Vs
THE CIR ZONE-II, RTO, GUJRANWALA
Constitution of Pakistan Art. 13 Double jeopardy / Protection against double punishment

Protection against double punishment and self-incrimination. Scope issuance of a notice regarding the same taxed amounts tantamount to double jeopardy which cannot be given legal credence but also offends and defies the fundamental rights set out in Art. 13 of the Read More...


2022 PTD 187
Supreme Court of Pakistan 2022 COMMISSIONER INLAND REVENUE, PESHAWAR
Vs
MESSRS PAKISTAN TOBACCO COMPANY (LTD.), ISLAMABAD AND OTHERS
Sales Tax Act, 1990 S. 2(33), 2(39), 2(41), 3(1A) & 3(3) Sale of Goods Act (III of 1930), Ss. 4& 19 Defect in show cause notice

Smuggling seizure of things liable to confiscation extent of confiscation scope dumper truck was intercepted, post a chase on the highway, and inside a concealed specially designed tank was discovered loaded with ostensibly smuggled Read More...


2022 PTD 1147
126 TAX 342
2022 PTCL 698
Lahore High Court 2022 COMMISSIONER INLAND REVENUE
Vs
M/S NISHAT CHUNIAN POWER LIMITED
Sales Tax Act, 1990 Ss. 8(2) & 47 Sales Tax Rules, 2006 Rr. 13(3) & 24 Defect in show cause notice

Input tax, apportionment Question was with regard to adjustment of input tax on payments made against Capacity Purchase Price Validity Amount received on account of Capacity Purchase Price was not part of supply under R. 13(3) of Sales Tax Act, 1990 dealt with a Read More...


2022 PTD 1180
(2022)125 TAX 377
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

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 Read More...


2022 PTD 1209
Inland Revenue Appellate Tribunal 2022 M/S MUKHTAR-UL-HAQ POWER LOOMS, TOBA TEK SINGH
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 2(5AB), 2(25), 2(14), 2(37), 3, 6, 7, 11, 14, 22, 23, 26, 33(13), 46 Income tax record

Income tax record could be looked into for the purposes of conducting investigations and if any difference was detected by the detecting agency then it should be substantiated with solid and convincing material evidences as records relating to income tax could not Read More...


2022 PTD 207
Sindh High Court 2022 COMMISSIONER INLAND REVENUE
Vs
MESSRS FILTERS PAKISTAN (PVT.) LTD.
Sales Tax Act (VII of 1990) 11, 11(2), 11(5), 47, 74 Time Extension | Proceeding pending

Question before High Court was whether after expiry of timeframe prescribed by S.11(5) of Sales Tax Act, 1990 for issuance of show- cause notice, could the same be extended or resurrected in a time- barred cause under SRO No.394(1)/2001 dated 20.05.2009 read with Read More...


2022 PTD 345
Lahore High Court 2022 KAMRAN TEXTILE (PVT.) LTD
Vs
COMMISSIONER INLAND REVENUE, MULTAN AND OTHERS
Sales Tax Act (VII of 1990) 25(2), 72B, 72b(2) Audit

The procedure prescribed under S.25 of the Act Shall be adopted for conducting audit, and said S.72B(2) of Sales Tax Act, 1990, procedure prescribed under S.25 of the Act shall be adopted for conducting audit, and said S.72B(2) could not be construed in a manner to Read More...


2022 PTD 424
Supreme Court of Pakistan 2022 COMMISSIONER OF INLAND REVENUE
Vs
MESSRS MUGHAL BOARD INDUSTRY
Sales Tax Act (VII of 1990) 34A Amnesty notification | default surcharge

Illegally adjusted input tax---Default surcharge and penalties---Amnesty Scheme---Purpose of an amnesty scheme is to incentivize payment and collection of stuck-up revenue---Taxpayer who had made voluntary payment before the cut-off date under the amnesty scheme can Read More...


2022 PTD 434
Sindh High Court 2022 COMMISSIONER INLAND REVENUE ZONE-I
Vs
MESSRS FAIZAN STEEL
Sales Tax Act (VII of 1990) 3, 3(1)(A), 47, 71 Special procedure regime

Since such taxpayer was being dealt with through a special regime, therefore the general treatment may not be applied for recovery of additional sales tax in terms of S.3(1)(A) of Sales Tax Act, 1990 from such taxpayer-Rule 58H of Sales Tax (Special Procedure) Read More...


2022 PTD 390
Supreme Court of Pakistan 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 11, 21, 33, 34, 46, 73 Judgment

Judgment is an authority only in respect to what it decides, and only with regard to the proposition of law raised, in that case, and therefore point not argued before the Court cannot be considered to have been dealt with by its Read More...


2022 PTD 683
Supreme Court of Pakistan 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 11, 21, 33, 34, 46, 73 Levy | charge | tax

---Levy/charge/tax, imposition of---Scope---Tax, levy or charge can only be imposed under a clear mandate and sanction of law. 

---Levy of tax---Scope—Measure of a tax must have a reasonable nexus with it, the subject matter, and that a tax cannot Read More...


2022 PTD 683
Supreme Court of Pakistan 2022 COMMISSIONER INLAND REVENUE ZONE-1, LAHORE.
Vs
M/S. PAK ELEKTRON LTD. ETC.
Sales Tax Act (VII of 1990) 4 Electricity Meters

Equipment eligible for zero rating of sales tax under SRO No. 530(1)/2005 dated 6-6-2005 (‘the SRO’)----Plea by tax department that electricity meters are consumer durables and are not eligible for classification as equipment and hence not covered by the Read More...


2022 PTD 747
Inland Revenue Appellate Tribunal 2022 MESSRS TOWN CRIER (PVT.) LTD., SARGODHA ROAD, FAISALABAD
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 7, 8, 10, 21, 73 Adjustment

Legislature had consciously given a right to a buyer in such cases to reclaim input tax so paid, where registration of the supplier was suspended or blacklisted, either as a refund or by way of adjustment---Subsequent blacklisting did not disentitle the buyer from Read More...


2022 PTD 749
Inland Revenue Appellate Tribunal 2022 MESSRS TOWN CRIER (PVT.) LTD., SARGODHA ROAD, FAISALABAD
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 7, 8, 10, 21, 73 Goods indirectly used

Alleged goods/services were not directly in use for manufacturing or production of taxable goods yet they were indirectly used for the progress, promotion, advancement and enhancement of business activity and there was nothing emphatic in the Sales Tax Act, 1990, Read More...


2022 PTD 749
Inland Revenue Appellate Tribunal 2022 MESSRS TOWN CRIER (PVT.) LTD., SARGODHA ROAD, FAISALABAD
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 7, 8, 10, 21, 73 Determination of tax liability

Determination of tax liability---Scope---Once a registered person established that the goods/services in question on which input tax had been paid were used or to be used “directly, indirectly or even remotely” for the purpose of ‘taxable Read More...


2022 PTD 749
Inland Revenue Appellate Tribunal 2022 MESSRS TOWN CRIER (PVT.) LTD., SARGODHA ROAD, FAISALABAD
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 7, 8, 10, 21, 73 Tax credit not allowed

Scope---Keyword used in S.7 and S.8(1)(a) of the Sales Tax Act, 1990, is “purpose” which means that input tax can be deducted on goods used for the purpose of taxable supplies---In other words, issue of adjustment of input tax is to be resolved with Read More...


2022 PTD 749
Inland Revenue Appellate Tribunal 2022 MESSRS TOWN CRIER (PVT.) LTD., SARGODHA ROAD, FAISALABAD
Vs
THE COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 7, 8, 10, 21, 73 Direct relationship of input

No condition of direct relationship of input goods to manufacturing of finished goods is provided in S. 8(1)(a) of Sales Tax Act, Read More...


2022 PTD 749
Supreme Court of Pakistan 2022 ISLAMABAD ELECTRIC SUPPLY COMPANY LTD. (IESCO) AND 3 OTHERS
Vs
COMMISSIONER INLAND REVENUE ISLAMABAD AND OTHERS
Sales Tax Special Procedure Rules, 2007 58H Steel melters and reroller

In the present case the consumers were steel-melters, steel re-rollers and composite units of steel melting and re-rolling (“the consumers”)---As to the sales tax charged by the appellants from these consumers for the supply of electricity, i.e., 17% Read More...


2022 PTD 765
Inland Revenue Appellate Tribunal 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 11, 21, 33, 34, 46, 73 Final discharge

Special procedure for payment of extra sales tax on specified electric home appliances-Assessment of tax and recovery of tax not levied or short levied or erroneously refunded-Scope-- Appellant was engaged in business of Storage Read More...


2022 PTD 783
Inland Revenue Appellate Tribunal 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 11, 21, 33, 34, 46, 73 De-registration | Blacklisting | Suspension

Certain transactions not admissible-Scope-Appellant had transacted all payments to his suppliers through Banking channel by complying with the mandatory provisions of S. 73 of the Sales Tax Act, 1990, which was the sole obligation of the buyer to ensure veracity of Read More...


2022 PTD 783
Inland Revenue Appellate Tribunal 2022 MESSRS AYAN TRADING COMPANY, FAISALABAD
Vs
COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 11, 21, 33, 34, 46, 73 Penalties/ Default surcharge

In case of penalty for late filing of returns, the initial onus of proving of mens rea is on the department---Imposing of penalties in case of committing default in payment of tax or late filing of sales tax returns is not automatic and some determination which Read More...


2022 PTD 783
Supreme Court of Pakistan 2022 COMMISSIONER OF INLAND REVENUE, LAHORE.
Vs
M/S. SARGODHA SPINNING MILLS (PVT.) LTD. FAISALABAD. ETC.
Sales Tax Act (VII of 1990) Ss. 46 & 47 Tribunal/final fact-finding body

Findings of facts determined by the Tribunal/Appellate Tribunal Interference by the High Court Tax Tribunal is the final fact finding body only “question of law” is to be examined by the (High) Court in a Sales tax Reference.

Tribunal is the Read More...


2022 PTD 1079
Supreme Court of Pakistan 2022 COMMISSIONER INLAND REVENUE, ZONE-II, REGIONAL TAX OFFICER (RTO), MAYO ROAD, RAWALPINDI AND ANOTHER
Vs
MESSRS SARWAQ TRADERS, 216/1-A, ADAMJEE ROAD, RAWALPINDI AND ANOTHER
Sales Tax Act (VII of 1990) S. 45-B(2) Appeal before CIR

Appeal before Commissioner Inland Revenue (Appeals) Maximum period of 180 days prescribed under section 45-2(B) of the Sales Tax Act, 1990 for deciding the appeal such prescribed time period was mandatory obligation fixed on the Commissioner (Appeals) by section Read More...


2022 PTD 1128
126 TAX 153
2022 PTCL 688
Supreme Court of Pakistan 2022 COMMISSIONER INLAND REVENUE, ZONE-II, REGIONAL TAX OFFICER (RTO), MAYO ROAD, RAWALPINDI AND ANOTHER
Vs
MESSRS SARWAQ TRADERS, 216/1-A, ADAMJEE ROAD, RAWALPINDI AND ANOTHER
Sales Tax Act (VII of 1990) S. 45-B(2) mandatory or directory

Ultimate test to determine whether a provision is mandatory or directory is that of ascertaining the legislative intent while the use of the word ‘shall’ is not the sole factor which determines mandatory or directory nature of a provision, it is Read More...


2022 PTD 1128
126 TAX 153
2022 PTCL 688
Inland Revenue Appellate Tribunal 2021 M/S ATLAS POWER LIMITED; 23-C, AZIZ AVENUE, CANAL PARK, GULBERG-V, LAHORE
Vs
COMMISSIONER INLAND REVENUE, ZONE-II, LTU, LAHORE
Sales Tax Act (VII of 1990) 11, 45B, 46(1)(b), Orders of Appellate Tribunal/ binding

Orders of Appellate Tribunal to be binding----Scope----Taxpayer assailed the order passed by Commissioner Inland Revenue under Read More...


2023 PTD 344
Inland Revenue Appellate Tribunal 2021 M/S ATLAS POWER LIMITED; 23-C, AZIZ AVENUE, CANAL PARK, GULBERG-V, LAHORE
Vs
COMMISSIONER INLAND REVENUE, ZONE-II, LTU, LAHORE
Sales Tax Act (VII of 1990) 11, 45B, 46(1)(b), Administration of justice

Where two forums have concurrent jurisdiction, the aggrieved person in the first instance must preferably approach to the lower Read More...


2023 PTD 344
Sindh High Court 2020 INDUS MOTOR COMPANY LIMITED AND OTHERS
Vs
PAKISTAN AND OTHERS
Sales Tax Act (VII of 1990) Sec.25, 45, 46 and 72-C Powers of Commissioner-IR

(i) Whether under s.25(1) of the 1990 Act, (“the Commissioner”) and under s.45 of the 2005 Act, (“the Officer of Inland Revenue”) can have access to records or documents without assigning any reasons. The Read More...


2020 PTD 297 
Sindh High Court 2020 INDUS MOTOR COMPANY LIMITED AND OTHERS
Vs
PAKISTAN AND OTHERS
Sales Tax Act (VII of 1990) S .25, 45, 46 and 72-C Audit / selection for Audit

12). We find that the process of balloting was conducted from amongst a pool of persons objectively determined by the Board in accordance with a transparent policy, uniformly applied in accordance with law. The process was undertaken Read More...


2020 PTD 297 
Lahore High Court 2020 COMMISSIONER INLAND REVENUE
Vs
HILAL CHEMICALS
Sales Tax Act (VII of 1990) Ss. 21, 7, 8 & 2(37) Blacklisting

While denying adjustment of input tax on ground of tax fraud, initial burden lay on Department to establish that invoices had been issued during a period where a supplier for suspended or blacklisted – In case invoices were not Read More...


2020 PTD 232
Lahore High Court 2020 COMMISSIONER INLAND REVENUE
Vs
HILAL CHEMICALS
Sales Tax Act (VII of 1990) S. 21, 7, 8 & 2(37) Tax invoices

While denying adjustment of input tax on ground of tax fraud, initial burden lay on Department to establish that invoices had been issued during a period where a supplier for suspended or blacklisted – In case invoices were not Read More...


2020 PTD 232
Sindh High Court 2020 MUHAMMAD IBRAHIM
Vs
THE STATE
Sales Tax Act (VII of 1990) S. 2(37), 2(9), 2(14)(a), 3, 6, 78, 78(1)(a) & 73, 33(3), (5), (8), (He), (13), (16), (18) Bail before arrest, confirmation

However, the case of the applicant is quite distinguishing. No doubt, he has been charged with tax evasion and the criminal case is still pending against him and the same should be decided on its merits but it is also a fact that after Read More...


2020 PTD 227
Sindh High Court 2020 MUHAMMAD IBRAHIM
Vs
THE STATE
Sales Tax Act (VII of 1990) S. 2(37), 2(9), 2(14)(a), 3, 6, 78, 78(1)(a) & 73, 33(3), (5), (8), (He), (13), (16), (18) Bail before arrest, confirmation

Applicant, named in supplementary final report (challan) without any specific role challenged the order of recovery passed by Assistant Commissioner of Sales Tax before Commissioner of Sales Tax which was allowed- Department did not Read More...


2020 PTD 227
Sindh High Court 2020 MUHAMMAD IBRAHIM
Vs
THE STATE
Sales Tax Act (VII of 1990) S. 2(37), 2(9), 2(14)(a), 3, 6, 78, 78(1)(a) & 73, 33(3), (5), (8), (He), (13), (16), (18) supplementary final report (challan)

Applicant, named in supplementary final report (challan) without any specific role challenged the order of recovery passed by Assistant Commissioner of Sales Tax before Commissioner of Sales Tax which was allowed- Department did not Read More...


2020 PTD 227
Federal Tax Ombudsman 2020 BOARDS OF INTERMEDIATE AND SECONDARY EDUCATION, ABBOTTABAD
Vs
THE SECRETARY REVENUE DIVISION, ISLAMABAD
Establishment of Office of Federal Tax Ombudsman Ordinance 2000 Ss.14(8), 9 & 2(3) Income Tax Ordinance 2001 S.171 Additional payment for delayed refunds

Complainant/taxpayer sought review of order of FTO whereby complaint against, inter alia, non-payment of additional payment for delayed refund, was rejected on ground that Federal Tax Ombudsman lacked jurisdiction.
Reappraisal of Read More...


2020 PTD 557
Appellate Tribunal Inland Revenue 2020 M/S FAMOUS SWEETS, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Sales Tax Act (VII of 1990) S. 26, 23, 2(40), 3 & 25 Sales Tax Rules, 2006, R. 6 Audit of unregistered tax person/ Compulsory registration/ Non-filing of sales return

Dept., during scrutiny of income tax returns of taxpayer, observed certain discrepancies and issued a show cause notice to the taxpayer confronting sales tax liability along with default surcharge and penalty.
Taxpayer was registered as a manufacturer with the Read More...


2020 PTD 562
Appellate Tribunal Inland Revenue 2020 M/S FAMOUS SWEETS, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Interpretation of statutes Taxation

Tax cannot be charged and levied unless it falls squarely within the purview of the charging provisions. 
Person was to be taxed only if he comes within the letter of law otherwise, he is free even though his case falls within the spirit of the Read More...


2020 PTD 562
Appellate Tribunal Inland Revenue 2020 M/S FAMOUS SWEETS, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Interpretation of statutes Taxing statute

Taxing statute-Scope-Only the letter of law, in fiscal statutes, has to be looked into and there is no room for any intendment, equity or presumption-Fiscal statutes were to be strictly constructed, as far as liability to tax is Read More...


2020 PTD 562
Supreme Court of Pakistan 2020 ABBASI ENTERPRISES UNILEVER DISTRIBUTOR, HARIPUR AND ANOTHER
Vs
COLLECTOR OF SALES TAX AND FEDERAL EXCISE, PESHAWAR AND OTHERS
Sales Tax Act (VII of 1990) S: 11, 36(3) Time barred show cause notice

Taxpayer was aggrieved of show cause notice issued by authorities beyond period specified in law---Plea raised by authorities was that order of extension was made on 24-09-2010 whereas judgment in case titled 'Collector of Sales Tax Read More...


2020 PTD 147
Sindh High Court 2020 DIRECTOR, DIRECTORATE GENERAL OF INTELLIGENCE AND INVESTIGATION, KARACHI
Vs
NAFEES-UR-REHMAN BARRY AND ANOTHER
Sales Tax Act (VII of 1990) S: 13, 33(13), 6th, 8th Penalty

Illegal claim of exemption-Appeal against acquittal-Absence of mens rea-Scope-Case against accused persons was that they were involved in unlawful and illegal claim of zero rated exemption of sales tax on import of processed cheese Read More...


2020 PTD 163
Islamabad High Court 2020 MESSRS HUMAK ENGINEERING (PVT.) LTD., THROUGH CEO
Vs
THE MODEL COLLECTORATE OF CUSTOMS (MCC), ISLAMABAD THROUGH COLLECTOR AND 4 OTHERS
Customs Act (IV of 1969) 176, 196 Recovery of Short Payment

Petitioner assailed order-in-original passed by Collector of Customs Read More...


2020 PTD 568
Lahore High Court 2020 QUAID-E-AZAM THERMAL PRIVATE LIMITED THROUGH CHIEF EXECUTIVE OFFICER, LAHORE
Vs
FEDERAL BOARD OF REVENUE THROUGH CHAIRMAN, LAHORE AND OTHERS
Sales Tax Act (VII of 1990) S: 33(19), 48(1)(b) Fundamental Rights

Fundamental Rights of Fair Trial, Right to Information and Right of individuals to be dealt with in accordance with law-Nature and scope-Articles 10A & 19A of the Constitution guarantee that necessary information be disclosed and a Read More...


2020 PTD 165
Islamabad High Court 2020 MESSRS HUMAK ENGINEERING (PVT.) LTD., THROUGH CEO
Vs
THE MODEL COLLECTORATE OF CUSTOMS (MCC), ISLAMABAD THROUGH COLLECTOR AND 4 OTHERS
Customs Act (IV of 1969) 176, 196 Reference/ Fundamental rights

Question relating to fundamental rights enshrined in the Constitution cannot be agitated in Reference/advisory jurisdiction of High Court as the scope of advisory jurisdiction is limited to the extent of questions of law arising out of Read More...


2020 PTD 568
Lahore High Court 2020 QUAID-E-AZAM THERMAL PRIVATE LIMITED THROUGH CHIEF EXECUTIVE OFFICER, LAHORE
Vs
FEDERAL BOARD OF REVENUE THROUGH CHAIRMAN, LAHORE AND OTHERS
Sales Tax Act (VII of 1990) S: 33(19), 48(1)(b) Attachment of Bank Accounts

Attachment of its Bank Accounts for recovery of outstanding liabilities under S.48 of the Sales Tax Act, 1990 read with R. 71 of the Sales Tax Rules, 2006 - Contention of taxpayer, inter alia, was that mandatory time period of 30 days Read More...


2020 PTD 165
Customs Appellate Tribunal 2020 THE DIRECTOR, THROUGH DEPUTY DIRECTOR
Vs
M/S EKADA CORPORATION, KARACHI AND ANOTHER
Customs Act (IV of 1969) 3, 3DD, 4, 26A, 80, 83, 180, 193, 195 Audit/Notice/ Reasonable time

Officer of Customs is empowered to conduct audit, inquiry or investigation of an importer for the purpose of ascertaining the correctness of any declaration, document or statement for determining the liability of duty, taxes, fees, Read More...


2020 PTD 573
Lahore High Court 2020 QUAID-E-AZAM THERMAL PRIVATE LIMITED THROUGH CHIEF EXECUTIVE OFFICER, LAHORE
Vs
FEDERAL BOARD OF REVENUE THROUGH CHAIRMAN, LAHORE AND OTHERS
Sales Tax Act (VII of 1990) S: 33(19), 48(1)(b) Fair Trial

Attachment of its Bank Accounts for recovery of outstanding liabilities under S.48 of the Sales Tax Act, 1990 read with R. 71 of the Sales Tax Rules, 2006 - Contention of taxpayer, inter alia, was that mandatory time period of 30 days Read More...


2020 PTD 165
Customs Appellate Tribunal 2020 THE DIRECTOR, THROUGH DEPUTY DIRECTOR
Vs
M/S EKADA CORPORATION, KARACHI AND ANOTHER
Customs Act (IV of 1969) 3, 3DD, 4, 26A, 80, 83, 180, 193, 195 Audit of sales tax

Directorate General of Post Clearance Audit---Jurisdiction---Deputy Director of Post Clearance Audit is not empowered to issue audit observation in the matter of sales Read More...


2020 PTD 573
Customs Appellate Tribunal 2020 THE DIRECTOR, THROUGH DEPUTY DIRECTOR
Vs
M/S EKADA CORPORATION, KARACHI AND ANOTHER
Customs Act (IV of 1969) 3, 3DD, 4, 26A, 80, 83, 180, 193, 195 Audit of income tax

Directorate General of Post Clearance Audit-Jurisdiction-Officials of Directorate General of Post Clearance Audit are not designated as officers of Inland Revenue under S. 228 or any other section of  ITO, 2001and as such are not empowered to carry out audit Read More...


2020 PTD 573
Customs Appellate Tribunal 2020 THE DIRECTOR, THROUGH DEPUTY DIRECTOR
Vs
M/S EKADA CORPORATION, KARACHI AND ANOTHER
Customs Act (IV of 1969) 3, 3DD, 4, 26A, 80, 83, 180, 193, 195 Audit of Income Tax

Collector of Customs (Adjudication) is not designated as an officer of Inland Revenue under S. 30, ST Act, 1990 or under any section of  ITO, 2001and as such is not empowered to exercise powers under any section of ST Act, 1990 and Read More...


2020 PTD 573
Customs Appellate Tribunal 2020 THE DIRECTOR, THROUGH DEPUTY DIRECTOR
Vs
M/S EKADA CORPORATION, KARACHI AND ANOTHER
Customs Act (IV of 1969) 3, 3DD, 4, 26A, 80, 83, 180, 193, 195 Power of Board or Collector u/s 195

Order passed by Competent Authority under the provisions of Ss. 80 & 83 of Customs Act, 1969 and Rr. 438 & 442 of Customs Rules, 2001 could only be corrected by revisional Authority in exercise of power under S. 195 of Customs Read More...


2020 PTD 573
Sindh High Court 2020 ASIF IQBAL
Vs
THE STATE
Sales Tax Act (VII of 1990) S: 10 & 33 Trial of a Clerk

If such a scam has taken place in the department, why the responsible officers of the department were not put to task for registration of a fake concern with the office of the Sales Tax Department. Even, no effort was taken during the Read More...


2020 PTD 237
Sindh High Court 2020 ASIF IQBAL
Vs
THE STATE
Sales Tax Act (VII of 1990) S: 10 & 33 Penalty

Accused was convicted and sentenced by Trial Court for receiving illegal tax refunds through forged, manipulated, falsified and bogus invoices- Validity- Process of registration of a concern was manifold in which physical verification Read More...


2020 PTD 237
Sindh High Court 2020 ASIF IQBAL
Vs
THE STATE
Sales Tax Act (VII of 1990) S: 10 & 33 FIR

Accused was convicted and sentenced by Trial Court for receiving illegal tax refunds through forged, manipulated, falsified and bogus invoices- Validity- Process of registration of a concern was manifold in which physical verification Read More...


2020 PTD 237
Supreme Court of Pakistan 2020 MESSRS ZAK RE-ROLLING MILLS (PVT.) LTD.
Vs
APPELLATE TRIBUNAL INLAND REVENUE AND OTHERS
Sales Tax Act (VII of 1990) S: 3(1A), 47 Steel Melter

Sales Tax Special Procedures Rules, 2007, R. 58H---Steel-melter---Taxable supplies made to unregistered persons--- Levy of further sales tax under S. 3(1A) of Sales Tax Act, 1990---Permissibility---Payment of sales tax under a specific Read More...


2020 PTD 382
Supreme Court of Pakistan 2020 MESSRS ZAK RE-ROLLING MILLS (PVT.) LTD.
Vs
APPELLATE TRIBUNAL INLAND REVENUE AND OTHERS
Sales Tax Act (VII of 1990) S: 3(1A), 47 Further Tax

10). Learned counsel for the petitioner on conclusion of his arguments tried to argue that the Capital Development Authority has been collecting CVT or that it should be directed to do so. We have found the arguments of the learned Read More...


2020 PTD 382
Supreme Court of Pakistan 2020 MESSRS ZAK RE-ROLLING MILLS (PVT.) LTD.
Vs
APPELLATE TRIBUNAL INLAND REVENUE AND OTHERS
Sales Tax Act (VII of 1990) S: 12(18), 13(aa) Loans, advances and gifts

8. A plain reading of section 12(18) of the Ordinance shows that the said provision is attracted when loans, advances and gifts are received in cash. However, in the case before us, admittedly, no cash exchanged hands. Members of the AOP Read More...


2020 PTD 382
Sindh High Court 2020 THE COMMISSIONER (LEGAL), INLAND REVENUE, REGIONAL TAX OFFICE, HYDERABAD
Vs
MESSRS FATEH TEXTILE MILLS LTD.
Sales Tax Act, 1990 S: 10, 11 & 21 Black Listed or deregistered

It is the contention of counsel for the applicant Department that as the invoices issued from those sellers, who were subsequently declared as blacklisted or de-registered; therefore, no refund can be allowed to the respondent. In Read More...


2020 PTD 203
Sindh High Court 2020 THE COMMISSIONER (LEGAL), INLAND REVENUE, REGIONAL TAX OFFICE, HYDERABAD
Vs
MESSRS FATEH TEXTILE MILLS LTD.
Sales Tax Act, 1990 S: 10, 11 & 21 Flying Invoices

It is the contention of counsel for the applicant Department that as the invoices issued from those sellers, who were subsequently declared as blacklisted or de-registered; therefore, no refund can be allowed to the respondent. In Read More...


2020 PTD 203
Inland Revenue Appellate Tribunal of Pakistan 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD. SIALKOT
Vs
THE CIR, ZONE-IV, LTU, LAHORE
Sales Tax Act (VII of 1990) S. 11(2) & 38 Constitution of Pakistan, Art. 13 Difference in stocks/Recovery of sales tax/Second Show Cause/ Doctrine of double jeopardy

Commissioner Inland Revenue passed impugned order on the basis of stock taking carried out on 11-12-2017 under S. 38 and passed the impugned order pertaining to the tax periods starting from April 2015 to October 2017, whereas the Dept. Read More...


2020 PTD 585
Sindh High Court 2020 THE COMMISSIONER (LEGAL), INLAND REVENUE, REGIONAL TAX OFFICE, HYDERABAD
Vs
MESSRS FATEH TEXTILE MILLS LTD.
Sales Tax Act, 1990 S: 10, 11 & 21 Pecuniary jurisdiction

So far as the Question No. 1 is concerned, the same pertains to pecuniary jurisdiction of the officer, who has passed Order-in-Original. In a case involving contravention on the part of a registered person with respect of assessment of Read More...


2020 PTD 203
Inland Revenue Appellate Tribunal of Pakistan 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD. SIALKOT
Vs
THE CIR, ZONE-IV, LTU, LAHORE
Sales Tax Act (VII of 1990) 3(1A), 6, 7, 8, 22, 23, 25, 25(2), 26, 11, 11(2), 38 Difference in stocks/Recovery of sales tax

Assessment and recovery of sales tax- Assessing Authority, on physical stock taking of registered person under S. 38 of ST Act, 1990, observed considerable difference between declared closing stocks and physical closing stocks of Read More...


2020 PTD 585
Sindh High Court 2020 THE COMMISSIONER (LEGAL), INLAND REVENUE, REGIONAL TAX OFFICE, HYDERABAD
Vs
MESSRS FATEH TEXTILE MILLS LTD.
Sales Tax Act, 1990 S: 10, 11 & 21 Monetary Limit of Refund

So far as the Question No. 1 is concerned, the same pertains to pecuniary jurisdiction of the officer, who has passed Order-in-Original. In a case involving contravention on the part of a registered person with respect of assessment of Read More...


2020 PTD 203
Inland Revenue Appellate Tribunal of Pakistan 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD. SIALKOT
Vs
THE CIR, ZONE-IV, LTU, LAHORE
Sales Tax Act (VII of 1990) 3(1A), 6, 7, 8, 22, 23, 25, 25(2), 26, 11, 11(2), 38 Taxation/ Double jeopardy

Taxation---Presumption--Taxpayer can only be subjected to under unambiguous and clear provision of law--No room intendment and no presumption as to tax. 

-Double jeopardy--Person cannot be vexed twice for the same Read More...


2020 PTD 585
Inland Revenue Appellate Tribunal of Pakistan 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD. SIALKOT
Vs
THE CIR, ZONE-IV, LTU, LAHORE
Sales Tax Act (VII of 1990) 3(1A), 6, 7, 8, 22, 23, 25, 25(2), 26, 11, 11(2), 38 access to premises, Stock accounts and records

No provision for conducting an audit of a taxpayer in S. 38, ST Act, 1990--- Officer of Inland Revenue empowered by FBR or Commissioner could have free access to the premises, stocks, accounts and records to examine and take into custody such records to inquire and Read More...


2020 PTD 585
Balochistan High Court 2020 M/S SHABAN STEEL INDUSTRY THROUGH AUTHORIZED ATTORNEY AND OTHERS
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY FEDERAL BOARD OF REVENUE AND OTHERS
Customs Act (IV of 1969) 27-A Scrap/Recycling/Mutilating and scraping of serviceable goods

Import of re-rollable scrap---Recycling---Mutilating and scraping of serviceable goods---Object, purpose and scope---Purpose of mutilating and scrapping of serviceable goods is to convert them into unserviceable condition---Permitting Read More...


2020 PTD 594
Balochistan High Court 2020 M/S SHABAN STEEL INDUSTRY THROUGH AUTHORIZED ATTORNEY AND OTHERS
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY FEDERAL BOARD OF REVENUE AND OTHERS
Customs Act (IV of 1969) 27-A Scrap/Recycling/Mutilating and scraping of serviceable goods

Law is something that has been passed through legislative process. By contrast, Rule is something that has been created by executive, by exercising power conferred upon them by law---Law carries more weight which prevails, as such, Rules Read More...


2020 PTD 594
Balochistan High Court 2020 M/S SHABAN STEEL INDUSTRY THROUGH AUTHORIZED ATTORNEY AND OTHERS
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY FEDERAL BOARD OF REVENUE AND OTHERS
Customs Act (IV of 1969) 27-A Interpretation of statutes

Law is something that has been passed through legislative process. By contrast, Rule is something that has been created by executive, by exercising power conferred upon them by law---Law carries more weight which prevails, as such, Rules Read More...


2020 PTD 594
Balochistan High Court 2020 M/S SHABAN STEEL INDUSTRY THROUGH AUTHORIZED ATTORNEY AND OTHERS
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY FEDERAL BOARD OF REVENUE AND OTHERS
Customs Act (IV of 1969) 27-A mutilation and scrapping

Petitioners were importers of re-roll-able scrap and were aggrieved of seizure of their imported products by customs authorities---Plea raised by customs authorities was that imported goods were prime quality goods and not scrap Read More...


2020 PTD 594
Sindh High Court 2020 SHAFQAT ELAHI SHAIKH
Vs
THE DEPUTY COMMISSIONER OF INCOME TAX
Income Tax Ordinance (XLIX of 2001) 62, 135 Capital gain/Taxable income/Adventure in nature of trade

Taxpayer sold his property and relocated to another place due to security concerns but tax authorities added capital gain from sale of property as taxable income under adventure in nature of trade---Plea raised by Dept. was that income Read More...


2020 PTD 604
Sindh High Court 2020 MOIN JAMAL ABBASI
Vs
FEDERATION OF PAKISTAN THROUGH SECRETARY AND 2 OTHERS
Customs Act (IV of 1969) 19, 223, First Schedule Payment of cumulative amount

Petitioner imported a vintage vehicle but of same was denied on grounds that there was ambiguity in law regarding imposition of taxes on vintage vehicles.

No reference to any other restriction or Read More...


2020 PTD 660
Sindh High Court 2020 THE COLLECTOR OF CUSTOMS THROUGH ADDITIONAL COLLECTOR OF CUSTOMS
Vs
MUHAMMAD ARIF UR REHMAN AND ANOTHER
Customs Act (IV of 1969) 156, 196 Payment of cumulative amount/old record

ten years old could be demanded from importer---Mere presumption as to allegation of smuggling in absence of any tangible material or evidence could not be approved particularly in respect of importable article beyond period available to Read More...


2020 PTD 627
CUSTOMS APPELLATE TRIBUNAL 2020 M/s MAC CORPORATION, KARACHI
Vs
The DEPUTY COLLECTOR (PREVENTIVE), SUKKUR, MCC OF HYDERABAD and 2 others
Customs Act (IV of 1969) 2(s), 2(s)(ii), 3DD, 9, 10, 26, 26A, 156(2), 177, 179, 180, 187 Transportation of goods valuing less than one hundred and fifty thousand rupees

Appellant imported goods which were being transported to his buyer when the officers of customs intercepted the vehicle---Officers of Customs detained the goods on failure of driver of the vehicle to produce valid import documents-Deputy Read More...


2020 PTD 632
CUSTOMS APPELLATE TRIBUNAL 2020 M/s MAC CORPORATION, KARACHI
Vs
The DEPUTY COLLECTOR (PREVENTIVE), SUKKUR, MCC OF HYDERABAD and 2 others
Customs Act (IV of 1969) 2(s), 2(s)(ii), 3DD, 9, 10, 26, 26A, 156(2), 177, 179, 180, 187 Power of adjudication---Show-cause notice--- Pecuniary jurisdiction

Appellant imported goods which were being transported to his buyer when the officers of Customs intercepted the vehicle---Officers of Customs detained the goods on failure of driver of the vehicle to produce valid import Read More...


2020 PTD 632
CUSTOMS APPELLATE TRIBUNAL 2020 M/s MAC CORPORATION, KARACHI
Vs
The DEPUTY COLLECTOR (PREVENTIVE), SUKKUR, MCC OF HYDERABAD and 2 others
Customs Act (IV of 1969) 2(s), 2(s)(ii), 3DD, 9, 10, 26, 26A, 156(2), 177, 179, 180, 187 Restriction on the possession of goods in certain areas

Smuggling---Officers of Customs---Jurisdiction--Scope---Appellant imported goods which were transported to his buyer when the officers of Customs intercepted the vehicle---Deputy Collector (Preventive) detained the goods on failure of Read More...


2020 PTD 632
CUSTOMS APPELLATE TRIBUNAL 2020 M/s MAC CORPORATION, KARACHI
Vs
The DEPUTY COLLECTOR (PREVENTIVE), SUKKUR, MCC OF HYDERABAD and 2 others
Customs Act (IV of 1969) 2(s), 2(s)(ii), 3DD, 9, 10, 26, 26A, 156(2), 177, 179, 180, 187 Appellant imported goods which were being transported to his buyer

Appellant imported goods which were being transported to his buyer when the officers of customs intercepted the vehicle---Officers of Customs detained the goods on failure of driver to produce valid import documents---Deputy Collector of Read More...


2020 PTD 632
CUSTOMS APPELLATE TRIBUNAL 2020 M/s MAC CORPORATION, KARACHI
Vs
The DEPUTY COLLECTOR (PREVENTIVE), SUKKUR, MCC OF HYDERABAD and 2 others
Customs Act (IV of 1969) 2(s), 2(s)(ii), 3DD, 9, 10, 26, 26A, 156(2), 177, 179, 180, 187 Audit by Directorate General of Post Clearance (Audit)

Procedure---Power of adjudication---Scope--- Record of case can only be demanded by Directorate General of Post Clearance Audit for conducting audit under S. 26(2), Customs Act, 1969 after serving notice/summon as per contemplation of Read More...


2020 PTD 632
Customs Appellate Tribunal 2020 MESSRS SAPNA ENTERPRISES, PESHAWAR
Vs
COLLECTOR OF CUSTOMS (ADJUDICATION), MCC, PESHAWAR AND 3 OTHERS
Customs Act (IV of 1969) Sales Tax Act (VII of 1990) 32(3A), 156(1)(14) 4, 3, 6, 33 Zero Rating

Brief facts of the case are that according to a contravention case the appellants imported 11 consignments of monofilaments yarn and classified the goods in Read More...


2020 PTD 50
Inland Revenue Appellate Tribunal of Pakistan 2020 MESSRS GENERATION (PVT.) LTD., LAHORE
Vs
THE CIR, LTU, LAHORE
Sales Tax Act (VII of 1990) 2(43A), 3, 3(9A) Option to pay sales tax under the turnover regime

Tier-1 retailers---Option to pay sales tax under the turnover regime---Scope---Taxpayer as per provisions of S. 3(9A) of ST Act, 1990 applied to the Commissioner Inland Revenue, Large Taxpayers Unit for exercising its option to pay sales Read More...


2020 PTD 648
Inland Revenue Appellate Tribunal 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD., SIALKOT
Vs
THE CIR, LTU, LAHORE
Sales Tax Act (VII of 1990)a 2(37), 11, 25, 38, 40, 72B Authorized officer to have access to premise stocks, accounts and records

Authorized officer to have access to premise stocks, accounts and records---Assessment of tax and recovery of t not levied or short levied or erroneously refunded---Scope---Director General of Intelligence and Investigation, during the Read More...


2020 PTD 666
Inland Revenue Appellate Tribunal 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD., SIALKOT
Vs
THE CIR, LTU, LAHORE
Sales Tax Act (VII of 1990)a 2(37), 11, 25, 38, 40, 72B Searches under warrant/Search to be made in presence of witnesses

Authorized Officer to have access to premises, stocks, accounts and records---Assessment of tax and recovery of tax not levied or short levied or erroneously refunded---Searches under warrant---Search to be made in presence of Read More...


2020 PTD 666
Inland Revenue Appellate Tribunal 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD., SIALKOT
Vs
THE CIR, LTU, LAHORE
Sales Tax Act (VII of 1990)a 2(37), 11, 25, 38, 40, 72B Sales tax is premised on a self-assessment paradigm

Sales tax is premised on a self-assessment paradigm, where the sales tax due is self-assessed by taxpayer and deposited along with the monthly sales tax return Supervision and monitoring of the self-assessment regime is through the Read More...


2020 PTD 666
Customs Appellate Tribunal 2020 M/S. BLUE ENTERPRISES LAHORE
Vs
THE DEPUTY COLLECTOR OF CUSTOMS, (GROUP-IV), MCC OF APPRAISEMENT-WEST, KARACHI AND ANOTHER
Sales Tax Act (VII of 1990) 3, 3(1)(6)(b), 4, 4(2)(c)(b), 8, 71 Non-Obstante Clause

Similarly, the Indian Supreme Court in Chandavarkar S.R. Rao v. Asha Lata S. Guram 1986 4 SCC 447 held as under; “A clause beginning with the expression Read More...


2020 PTD 241
Inland Revenue Appellate Tribunal 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD., SIALKOT
Vs
THE CIR, LTU, LAHORE
Sales Tax Act (VII of 1990)a 2(37), 11, 25, 38, 40, 72B Recovery of tax from a taxpayer, without due process of adjudication

Assessment of tax and recovery of tax not levied or short levied or erroneously refunded---Scope---Recovery of tax from a taxpayer, without due process of adjudication of the case cannot be equated with confession or admission of the charge---Coercive recovery from Read More...


2020 PTD 666
Customs Appellate Tribunal 2020 M/S. BLUE ENTERPRISES LAHORE
Vs
THE DEPUTY COLLECTOR OF CUSTOMS, (GROUP-IV), MCC OF APPRAISEMENT-WEST, KARACHI AND ANOTHER
Sales Tax Act (VII of 1990) 3, 3(1)(6)(b), 4, 4(2)(c)(b), 8, 71 Zero Rating

Federal government is empowered to notify any goods on which sales tax shall be charged at the rate of zero percent, despite availability of S.3 of the Sales Read More...


2020 PTD 241
Inland Revenue Appellate Tribunal 2020 M/S ISLAM SOAP INDUSTRIES (PVT.) LTD., SIALKOT
Vs
THE CIR, LTU, LAHORE
Sales Tax Act (VII of 1990)a 2(37), 11, 25, 38, 40, 72B Tax fraud---Burden of proof

Initial burden, in order to attract the provisions of S. 2(37), ST Act, 1990, lies on the Dept. to show that the registered person, knowingly, dishonestly or fraudulently and without any lawful excuse has done any act or caused any act Read More...


2020 PTD 666
Sindh High Court 2020 SAFE MIX CONCRETE LIMITED THROUGH COMPANY SECRETARY
Vs
PAKISTAN THROUGH SECRETARY (REVENUE DIVISION) AND 4 OTHERS
Civil Procedure Code (V of 1908) 20(c), 20, 9, O. VII, R. 10, O. XXXIX, Rr. 1 & 2 Territorial Jurisdiction

The Plaintiff has primarily impugned show-cause notice dated 24.01.2017 issued by Deputy Commissioner Inland Revenue, Lahore / Defendant No.4 through which it Read More...


2020 PTD 263
Sindh High Court 2020 THE COLLECTOR OF SALES TAX AND FEDERAL EXCISE
Vs
M/S AGRO CHEMICAL (PVT.) LTD.
Customs Act (IV of 1969) 79, 104 Input tax adjustment---Amendment in law

Taxpayer claimed input tax adjustments against bill-of-entry of its sister concern on goods imported---Authorities in order-in-original denied input tax adjustments but Lower Appellate Court allowed the same---Authorities assailed Read More...


2020 PTD 679
Sindh High Court 2020 THE COLLECTOR OF SALES TAX AND FEDERAL EXCISE
Vs
M/S AGRO CHEMICAL (PVT.) LTD.
Customs Act (IV of 1969) 79, 104 Referential legislation/ Types

Referential legislation is of two types--One is where an earlier legislation or some of its provisions are incorporated in subsequent legislation; in such case, provision of earlier legislation or its portion so incorporated are Read More...


2020 PTD 679
Sindh High Court 2020 THE COLLECTOR OF SALES TAX AND FEDERAL EXCISE
Vs
M/S AGRO CHEMICAL (PVT.) LTD.
Customs Act (IV of 1969) 79, 104 Declaratory amendment/vested rights

Declaratory amendment---Retrospectively--- Object, purpose and scope---Every statute, prima facie, has prospective application unless it is expressly provided that same will have retrospective operation---Not necessary that a declaratory Read More...


2020 PTD 679
Sindh High Court 2020 MUHAMMAD AKRAM YOUSUF
Vs
THE STATE
Sales Tax Act (VII of 1990) 33(3), 33(5), 33(8), 33(11C), 33(13), 33(16), 33(18) Use of login and passwords of a company by some fraudsters

Use of login and passwords of a company by some fraudsters to file fake sales Read More...


2020 PTD 710
Lahore High Court 2020 JAMIL SWEETS / JAMEEL SWEETS
Vs
FEDERATION OF PAKISTAN AND OTHERS
Constitution of Pakistan 199 Judicial review of delegated

Judicial review of delegated / subordinate legislation---Scrutiny of the Constitutionality of legislation by High Court under Art. 199 of the Constitution---Scope---Delegated legislation beyond powers conferred by parents statute---Principles of judicial review of Read More...


2020 PTD 752
Lahore High Court 2020 JAMIL SWEETS / JAMEEL SWEETS
Vs
FEDERATION OF PAKISTAN AND OTHERS
Constitution of Pakistan 199 Delegated Legislation/ Rules / regulations framed under a statute

Nature and object of such legislation---Construction of delegated legislation---Invalidity of delegated legislation---Scope---Provisions of a statute, if they dealt with a subject matter in considerable detail, then scope of delegated Read More...


2020 PTD 752
Lahore High Court 2020 JAMIL SWEETS / JAMEEL SWEETS
Vs
FEDERATION OF PAKISTAN AND OTHERS
Constitution of Pakistan 199 Monitoring or tracking of certain registered persons by electronic or other means

Monitoring or tracking of certain registered persons by electronic or other means---Point-of-sale real time monitoring of transactions of retailers---Power of Dept. to frame / amend Sales Tax Rules, 2006---Petitioners / taxpayers Read More...


2020 PTD 752
Lahore High Court 2020 JAMIL SWEETS / JAMEEL SWEETS
Vs
FEDERATION OF PAKISTAN AND OTHERS
Constitution of Pakistan 199 Judicial review of statutory provisions

Constitutional jurisdiction of High Court---Judicial review of statutory provisions---Scope---Statute could broadly challenge if it was in violation of guaranteed Fundamental Rights on ground that it was beyond capacity of the Read More...


2020 PTD 752
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE, (LEGAL), ISLAMABAD
Vs
Messrs WI-TRIBE PAKISTAN LTD., ISLAMABAD
Federal Excise Act, 2005 3 & Third Schedule, Table II, S. No. 2 Internet service/Exemption

Transmission of voice content through the internet---Exempted from Federal Excise Duty---All telecommunication facilities availed through the internet were exempted from Federal Excise Duty irrespective of their nature---Internet Read More...


2020 PTD 769
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE, (LEGAL), ISLAMABAD
Vs
Messrs WI-TRIBE PAKISTAN LTD., ISLAMABAD
Federal Excise Act, 2005 3 & Third Schedule, Table II, S. No. 2 Fiscal statute

Fiscal provision of a statute had to be construed liberally in favour of the tax Read More...


2020 PTD 769
Lahore High Court 2020 COMMISSIONER INLAND REVENUE
Vs
MESSRS NAEEM BROTHERS
Sales Tax Act (VII of 1990) 2(37), 8(1)(ca), 21(3), 47 Blacklisting and suspension of registration of registered person/Tax Credit

Blacklisting and suspension of registration of registered person---Tax fraud---Burden of proof-Scope---Registered person was alleged to have received refund of input tax against the sales tax invoices issued by suspended/blacklisted Read More...


2020 PTD 821
Lahore High Court 2020 COMMISSIONER INLAND REVENUE
Vs
MESSRS NAEEM BROTHERS
Sales Tax Act (VII of 1990) 2(37), 8(1)(ca), 21(3), 47 input tax (tax credit) should not be allowed for an invoice against which sales tax has not been deposited

Intention of Legislature as discernible from the provisions of S. 21(3) read with S. 8(1)(ca), of the ST Act, 1990 is that reclaim (refund) or adjustment of input tax (tax credit) should not be allowed for an invoice against which sales Read More...


2020 PTD 821
Inland Revenue Appellate Tribunal 2020 M/s AL-IKHLAS PACKAGES, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Sales Tax Act (VII of 1990) 3, 7, 7A, 8B, 11, 73 input tax against invoices issued by suspended unit

Dept., during audit proceedings, concluded that registered person had illegally adjusted inadmissible 'input tax against invoices issued by suspended unit
The Registered person did hold valid sales tax invoices duly incorporated in supplier's sales tax return and Read More...


2020 PTD 543
Inland Revenue Appellate Tribunal 2020 M/s AL-IKHLAS PACKAGES, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Sales Tax Act (VII of 1990) S. 11 Show Cause Notice contains no particular allegations

Dept. conducted audit of registered person's sales tax records which resulted into certain discrepancies on the basis of which show cause notice was issued---ACIR passed sales tax order-in-original-Being dissatisfied and aggrieved by the said order registered person Read More...


2020 PTD 543
Inland Revenue Appellate Tribunal 2020 M/s AL-IKHLAS PACKAGES, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Sales Tax Act (VII of 1990) S. 3 Tax on sales cannot be imposed

Tax on sales cannot be imposed and levied without establishing, clandestine removal of goods and receipt of money consideration in its respect---Without building said relationship, no tax can be assessed and recovered Read More...


2020 PTD 543
Inland Revenue Appellate Tribunal 2020 M/s AL-IKHLAS PACKAGES, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Sales Tax Act (VII of 1990) S. 7A Valued addition, Tax on specified goods on value addition

Allegation against the registered person was that he had declared value addition @ 8% which was on much lower side when compared with the other units engaged in the same business---Neither the goods in question were notified by the Federal Government under S. 7A, ST Read More...


2020 PTD 543
Inland Revenue Appellate Tribunal 2020 M/s AL-IKHLAS PACKAGES, FAISALABAD
Vs
THE CIR(A), RTO, FAISALABAD
Sales Tax Act (VII of 1990) S. 7A Value addition, Revenue Authorities has no power to fix

No addition can be made in the value merely on the basis of estimates and presumptions or even by comparing sales and profitability of a registered person over its years of business as it is not a divine factum that a business always earns profit without embracing Read More...


2020 PTD 543
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE (ZONE-I) LTU, KARACHI
Vs
M/S LINDE PAK LTD., KARACHI
Interpretation of statutes Instrument/Definition and meaning

The term 'instrument' has been defined in its ordinary sense, as a written legal document that defines rights, duties, entitlements or liabilities, such as statute, contract, will, promissory note or share certificate and with reference to commercial law, the terms Read More...


2020 PTD 549
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE (ZONE-I) LTU, KARACHI
Vs
M/S LINDE PAK LTD., KARACHI
Interpretation of statutes Agreement/Definition and meaning

An 'agreement' is a manifestation of mutual assent by two or more persons, and as the parties’ actual bargain founded in their language, or by implication from other circumstances'. It is an act in law whereby two or more persons declare their consent as to Read More...


2020 PTD 549
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE (ZONE-I) LTU, KARACHI
Vs
M/S LINDE PAK LTD., KARACHI
Income Tax Ordinance (XXXI OF 1979) 50(7D), 52 Bond; Certificate; Debenture; security; Definition and Meaning

A 'bond' has been described as a "document containing confession of a debt", as a "written promise to pay money", or to do some act if certain circumstances occur, or a certain time elapse. There is no distinction between bonds and 'certificates of indebtedness' Read More...


2020 PTD 549
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE (ZONE-I) LTU, KARACHI
Vs
M/S LINDE PAK LTD., KARACHI
Income Tax Ordinance 1979 [since repealed] S. 50(7D) Finance/loan agreement/Mark-up accrued

Tax Dept. found that the respondent company had not deducted and paid tax on the mark-up accrued in terms of a finance/loan agreement executed between the respondent-company and a consortium of financial institutions and commercial banks, in respect of a long term Read More...


2020 PTD 549
Supreme Court of Pakistan 2020 COMMISSIONER INLAND REVENUE (ZONE-I) LTU, KARACHI
Vs
M/S LINDE PAK LTD., KARACHI
Income Tax Ordinance (XXXI OF 1979) [since repealed] S 50(7D) Ejusdem generis

Ejusdem generis meant 'the same kind or class', which required that when a general word or phrase followed a list of specifics the former would be interpreted to include only the items of the same class as those listed-Where a word of wider meaning was included in a Read More...


2020 PTD 549
Lahore High Court 2015 Messrs LAHORE ELECTRIC SUPPLY COMPANY LTD. through Director Legal
Vs
FEDERAL BOARD OF REVENUE through Chairman and 2 others
Sales Tax Act (VII of 1990) 11A, 11, 48 e-filing of Returns

e-filing of the returns along with required information does not take away the ability or the requirement of the Respondents to verify the information provided in the returns.

 

Even otherwise, section 11A has practically lost its efficacy after Read More...


2015 PTD 1
Lahore High Court 2015 Messrs LAHORE ELECTRIC SUPPLY COMPANY LTD. through Director Legal
Vs
FEDERAL BOARD OF REVENUE through Chairman and 2 others
Sales Tax Act (VII of 1990) 11A, 11, 48 Tax Due

We are afraid, the view expressed in the impugned judgment that verification of electricity bills, placed on the website of the appellant, is permissible and Read More...


2015 PTD 1
Federal Tax Ombudsman 2005 Messrs PACE INTERNATIONAL, RAWALPINDI
Vs
SECRETARY, REVENUE DIVISION, ISLAMABAD
Sales Tax Act (VII of 1990) 11, 22 Valuation Ruling

Goods valuation---Revision---Provisional assessment--Petitioners / importers got their consignments released on provisional Read More...


2005 PTD 340
2005 PTCL 836
Lahore High Court 2003 COLLECTOR OF SALES TAX, LAHORE COLLECTORATE through Assistant Collector of Sales Tax/E&C, Chunian Division, Lahore
Vs
Messrs ALNOOR BULBS (PVT.) LTD. and another
Sales Tax Act (VII of 1990) 26 Amnesty Scheme immunity from taxation & foreign assets

Constitutional petition---Capital Value Tax-Foreign assets of tax resident-Vires---Pith and substance, rule of Read More...


2023 PTD 268
Lahore High Court 2002 BROTHERS SUGAR MILLS LIMITED through General Manager Finance
Vs
APPELLATE TRIBUNAL SALES TAX, CUSTOM HOUSE, LAHORE and 2 others
Sales Tax Special Order, 1998 Special Auditors | Appointment of Terms

Sales Tax General Order No. 1, dated 7-1-1999 Sales tax General Order No. 09 of 1999, dated 22-09-1999 S.R.O. No. 206(I)/2001, dated 2-4-2001 Read More...


2002 PTD 387
Lahore High Court 2002 OLYMPIA INDUSTRIES (PVT.) LTD., LAHORE
Vs
ASSISTANT COLLECTOR, CENTRAL EXCISE & SALES TAX; SHEIKHUPURA DIVISION, LAHORE and 2 others
Sales Tax Act (VII of 1990) 2(31; A) , 19 Registration under Sales Tax Act

Constitutional petition---Registration under Sales Tax Act, 1990-Maintaining of godown outside factory premises---Petitioner being manufacturer of man-made synthetic carpets was registered under Sales Tax Act, 1990--- Petitioner for Read More...


2002 PTD 776
Karachi High Court 2002 Messrs EVICRETE LIMITED through Chairman
Vs
CUSTOMS, CENTRAL EXCISE AND SALES TAX APPELLATE TRIBUNAL (KARACHI BENCH) and others
Sales Tax Act (VII of 1990) 46, 46(4) Interim order by the High Court / Interim orders by any other forum

Constitutional petition Recovery of revenue Interim order passed by person other than the High Court Provision of Art. 199(4A) of the Read More...


2002 PTD 403
86 TAX 193
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 33, 56 Show-cause notice / Non-filing of tax return

Non-filing of tax return---Show-cause notice--- Service---Effectiveness---Penalty---Show-cause notice for non-filing of tax return was sent through registered post which was not received back undelivered---Penalty for non-filing of tax return was imposed on the Read More...


2002 PTD 822
Lahore High Court 2002 Messrs RAMNA FITTINGS AND PIPE INDUSTRIES (PVT.) LTD. through Director, Lahore
Vs
COLLECTOR OF SALES TAX, CUSTOM HOUSE, LAHORE
Sales Tax Act (VII of 1990) .3(1)(a), 2(16), 2(35) , 6(1), (a), (b) ,& (e) Manufacture” or “ Produce

Manufacture or “ Produce” Section  2(16) cls.(b) & (c) of the Sale Read More...


2002 PTD 470
85 TAX 171
2002 PTCL 37
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 8(1)(b), 10 , 8, 7(2) , 10(2) Stock-in-trade

Stock-in-trade Definition of term "stock-in-trade" as goods and commodities purchased for sale or conversion into finished goods was an Read More...


2002 PTD 475
2001 PTCL 528
Lahore High Court 2002 Messrs RAMNA FITTINGS AND PIPE INDUSTRIES (PVT.) LTD. through Director, Lahore
Vs
COLLECTOR OF SALES TAX, CUSTOM HOUSE, LAHORE
Sales Tax Act (VII of 1990) .3(1)(a), 2(16), 2(35) , 6(1), (a), (b) ,& (e) Taxable activity

Manufacture or Produce  /Section  2 (16) cls.(b) & (c) of the Sale Tax  Act, 1990 are not to be read independently but rather to be read as part of or in continuance of cl.(a)  Processes mentioned in cls. (b) Read More...


2002 PTD 470
85 TAX 171
2002 PTCL 37
Lahore High Court, Multan Bench, Multan 2002 ATLAS TYRES (PVT.) LIMITED
Vs
COLLECTOR, SALES TAX and 2 others
Sales Tax Act (VII of 1990) 13 Exemption--Components and parts of vehicles

Components and parts of vehicles--Tyres and tubes for motor cars, motorcycles and scooters--- Exemption from payment of sales tax on tyres Read More...


2002 PTD 495
86 TAX 77
Lahore High Court 2002 Messrs HASEEB WAQAS SUGAR MILLS LIMITED through Chief Executive
Vs
THE COLLECTOR, SALES TAX, LAHORE and 2 others
Sales Tax Act (VII of 1990) 46, 47 Condonation of delay in filing appeal

Condonation of delay in filing appeal---Appellate Tribunal Read More...


2002 PTD 506
Lahore High Court 2002 COLLECTOR OF SALES TAX, CUSTOM HOUSE, LAHORE
Vs
Messrs HOECHST RAVI CHEMICALS LIMITED
Sales Tax Act (VII of 1990) 10, 10(1) Refund/ carried forward

Refund was refused to be adjusted being not pertaining to the tax period Validity Excess amount of input tax was not only confined to a tax Read More...


2002 PTD 508
85 TAX 492
Karachi High Court 2002 SUPER INDUSTRIES (PVT.) LTD
Vs
CENTRAL BOARD OF REVENUE and others
Sales Tax Act (VII of 1990) 3, 13(1), 33, 34 , 36 Exemption/ principle of consistency

Petitioners were engaged in manufacturing Brake Linings Sets and Brake Lining Rolls---Such goods prior to 3-7-1994 were subject to payment of sales tax, but were exempted from tax after amendment of S.R.O 555(I)/94 vide S.R.O. Read More...


2002 PTD 955
Karachi High Court 2002 SUPER INDUSTRIES (PVT.) LTD
Vs
CENTRAL BOARD OF REVENUE and others
Sales Tax Act (VII of 1990) 3, 13(1), 33, 34 , 36 Legislation/ Fiscal and Tax Laws

Fiscal and tax laws, drafting of---Every law particularly the law pertaining to fiscal matters and taxes are required to be unambiguous and clear---Lacunas in drafting of such law may have far-reaching effect---Draftsman concerned with Read More...


2002 PTD 955
Karachi High Court 2002 SUPER INDUSTRIES (PVT.) LTD
Vs
CENTRAL BOARD OF REVENUE and others
Sales Tax Act (VII of 1990) 3, 13(1), 33, 34 , 36 principle of consistency

Revenue' could not be allowed shifting of versions in respect of same Product with mere change in law pertaining to pertaining to taxability thereof.

(e) Sales tax----Revenue should be consistent in Read More...


2002 PTD 955
QUETTA HIGH COURT 2002 FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Islamabad and others
Vs
Messrs BALCHEM (PVT.) LTD., BALOCHISTAN
Sales Tax Act (VII of 1990) 47, 46, 2(33)(41)(44), 33 , 34 Question of law

Assessee was exempt from sales tax up to 30-6-1996 vide S.R.O. No.580(1)/91---Demand of sales tax by Authority on goods supplied after 30-6-1996---Tribunal found such demand to be exempt under said S.R.O.---Objection of assessee with Read More...


2002 PTD 967
87 TAX 247
QUETTA HIGH COURT 2002 FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Islamabad and others
Vs
Messrs BALCHEM (PVT.) LTD., BALOCHISTAN
Sales Tax Act (VII of 1990) 47, 46, 2(33)(41)(44), 33 , 34 Time of supply

Assessee-company was exempt from sales tax up to 30-6-1991 vide S.R.O. No.580(I)/91---Show-cause notice to assesse in respect of sales tax on goods supplied after 30-6-1996- Tribunal discharged such notice holding that goods manufactured Read More...


2002 PTD 967
87 TAX 247
QUETTA HIGH COURT 2002 FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Islamabad and others
Vs
Messrs BALCHEM (PVT.) LTD., BALOCHISTAN
Sales Tax Act (VII of 1990) 47, 46, 2(33)(41)(44), 33 , 34 Promissory estoppel

Promissory estoppel, doctrine of---Application--Where Government functionaries made promises and representation to anyone, who believed and acted under them, then such functionaries would be precluded from acting to the detriment of such Read More...


2002 PTD 967
87 TAX 247
QUETTA HIGH COURT 2002 FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Islamabad and others
Vs
Messrs BALCHEM (PVT.) LTD., BALOCHISTAN
Sales Tax Act (VII of 1990) 47, 46, 2(33)(41)(44), 33 , 34 Supply

Sale of fixed assets---Chargeability to tax---Tribunal had found that no sales tax was leviable on disposal of fixed assets owned by assessees, since they were not trading in the items they had sold---Contention of the Authority was that Read More...


2002 PTD 967
87 TAX 247
Karachi High Court 2002 Messrs COLLECTOR OF SALES TAX
Vs
Messrs MUNAF LACE and another
Sales Tax Act (VII of 1990) 47 Issues raised before tribunal

Only such question of law could be raised before High Court in appeal/reference which had been agitated/raised before Appellate Tribunal and findings thereon had been given by the Tribunal----Points not raised before the Tribunal could not be allowed to be raised Read More...


2002 PTD 1033
Karachi High Court 2002 FEDERATION OF PAKISTAN
Vs
METROPOLITAN STEEL CORPORATION
Sales Tax Act (VII of 1990) 3B, 7 Refund

Claim for refund of tax which was not payable or was paid in excess, could only be made by the person paying the tax and not the one who had Read More...


2002 PTD 87
Karachi High Court 2002 FEDERATION OF PAKISTAN
Vs
METROPOLITAN STEEL CORPORATION
Sales Tax Act (VII of 1990) 3B, 7 Adjustment

Determination of tax liability---Assessee was entitled to deduct the input tax paid by him from the output tax payable for the purpose of Read More...


2002 PTD 87
Karachi High Court 2002 FEDERATION OF PAKISTAN
Vs
METROPOLITAN STEEL CORPORATION
Sales Tax Act (VII of 1990) 3B, 7 Service of summons

Service of summons---Irregularity---Effect---Any irregularity in the service of summons does not vitiate a decree and service through a Court Read More...


2002 PTD 87
Karachi High Court 2002 FEDERATION OF PAKISTAN
Vs
METROPOLITAN STEEL CORPORATION
Sales Tax Act (VII of 1990) 3B, 7 Void order/ voidable order/ Limitation

Void order---Limitation---No limitation urns against a void order which is non-existent in the eyes of law and which Read More...


2002 PTD 87
Karachi High Court 2002 FEDERATION OF PAKISTAN
Vs
METROPOLITAN STEEL CORPORATION
Sales Tax Act (VII of 1990) 3B, 7 Public functionaries

Public functionaries and Read More...


2002 PTD 87
Karachi High Court 2002 Messrs FAMY LTD
Vs
COMMISSIONER OF SALES TAX
COMMISSIONER OF SALES TAX 28 Service of notice/ jurisdictional notice

Service of notice---Question of fact---Primarily the question pertaining to service of notice of a party is a question of fact, but when an issue Read More...


2002 PTD 102
Karachi High Court 2002 Messrs FAMY LTD
Vs
COMMISSIONER OF SALES TAX
COMMISSIONER OF SALES TAX 28 Finding of fact

If any Court or Tribunal Read More...


2002 PTD 102
Lahore High Court, Multan Bench, Multan 2002 LASER PARAXIS DEPLIEX CLINIC, LAHORE
Vs
CUSTOMS, CENTRAL EXCISE AND SALES TAX APPELLATE TRIBUNAL, LAHORE BENCH, CUSTOM HOUSE, LAHORE
Sales Tax Act (VII of 1990) 46, 46(2) Condonation of delay/ Indolent appellant

Power under Sales Tax Act, 1990 and Limitation Act, 1908----Comparison---Power conferred upon Tribunal under S.46(2) of the Sales Tax Act, Read More...


2002 PTD 549
85 TAX 18
Karachi High Court 2002 Messrs FAMY LTD
Vs
COMMISSIONER OF SALES TAX
COMMISSIONER OF SALES TAX 28 Judicial finding/ judicial order

Judicial finding---Every judicial finding should be based on reasons containing the justification for finding in the order itself. Read More...


2002 PTD 102
Lahore High Court, Multan Bench, Multan 2002 LASER PARAXIS DEPLIEX CLINIC, LAHORE
Vs
CUSTOMS, CENTRAL EXCISE AND SALES TAX APPELLATE TRIBUNAL, LAHORE BENCH, CUSTOM HOUSE, LAHORE
Sales Tax Act (VII of 1990) 46, 46(2) Condonation of delay/ Exclusion of time taken in proceedings

Exclusion of time taken in proceedings bona fide in Court without jurisdiction----Jurisdiction of Tribunal----Scope----Although there are no Read More...


2002 PTD 549
85 TAX 18
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 8(1)(a)(b) , 8 , 2(16) ,7 Taxable supplies/input tax adjustment

Provisions of S.8(1)(a)(b), Sales Tax Act, 1990 are restrictive in nature and restrictions so placed are given in cls. (a) & (b) of Read More...


2002 PTD 111
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 8(1)(a)(b) , 8 , 2(16) ,7 Produce/Taxable supply

“Produce”---Connotation---Process of embossing---Anything which directly contributes to the production of a taxable supply falls Read More...


2002 PTD 111
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 8(1)(a)(b) , 8 , 2(16) ,7 Tax liability

Tax Read More...


2002 PTD 111
Appellate Tribunal Inland Revenue 2002 Mohiuddin Siddiqui
Vs
Ghulam, Appraiser
Sales Tax Act (VII of 1990) 8(1)(a)(b) , 8 , 2(16) ,7 Tax liability/ Input tax adjustment

Input tax Read More...


2002 PTD 111
Lahore High Court 2002 Messrs KEEP & CARRY COMPANY
Vs
DEPUTY COLLECTOR (ADJUDICATION), SALES TAX and another
Sales Tax Act (VII of 1990) 46 Condonation of delay

Tribunal dismissed the appeal after Read More...


2002 PTD 608
Lahore High Court 2002 FAUJI CEMENT COMPANY LTD. through Secretary
Vs
ADDITIONAL COLLECTOR, CUSTOMS, CENTRAL EXCISE AND SALES TAX, ISLAMABAD and another
Sales Tax Act (VII of 1990) 45, 45(3), 2(16), 3 Jurisdiction of High Court

Constitutional jurisdiction of High Read More...


2002 PTD 609
86 TAX 110
Lahore High Court 2002 FAUJI CEMENT COMPANY LTD. through Secretary
Vs
ADDITIONAL COLLECTOR, CUSTOMS, CENTRAL EXCISE AND SALES TAX, ISLAMABAD and another
Sales Tax Act (VII of 1990) 45, 45(3), 2(16), 3 Constitutional petition/ Maintainability

Fiscal controversies--Resolving of Read More...


2002 PTD 609
86 TAX 110
Lahore High Court 2002 FAUJI CEMENT COMPANY LTD. through Secretary
Vs
ADDITIONAL COLLECTOR, CUSTOMS, CENTRAL EXCISE AND SALES TAX, ISLAMABAD and another
Sales Tax Act (VII of 1990) 45, 45(3), 2(16), 3 Withdrawal of appeal

Petitioner filed appeal before the Read More...


2002 PTD 609
86 TAX 110
Lahore High Court 2002 FAUJI CEMENT COMPANY LTD. through Secretary
Vs
ADDITIONAL COLLECTOR, CUSTOMS, CENTRAL EXCISE AND SALES TAX, ISLAMABAD and another
Sales Tax Act (VII of 1990) 45, 45(3), 2(16), 3 Manufacture/ produce/ Defined-Terms

Terms "manufacture" or Read More...


2002 PTD 609
86 TAX 110
Lahore High Court 2002 FAUJI CEMENT COMPANY LTD. through Secretary
Vs
ADDITIONAL COLLECTOR, CUSTOMS, CENTRAL EXCISE AND SALES TAX, ISLAMABAD and another
Sales Tax Act (VII of 1990) 45, 45(3), 2(16), 3 Lime stone

Constitutional petition Sales tax, Read More...


2002 PTD 609
86 TAX 110
Karachi High Court 2002 Messrs PREMIER DISTRIBUTORS
Vs
FEDERATION OF PAKISTAN and others
Sales Tax Act (VII of 1990) 13, 3(1) , 13(1), 241 availing alternate remedy/Petition/ Exemption

Constitutional petition ---Rule of availing alternate remedy available under the law before filing Constitutional petition --- Not absolute Read More...


2002 PTD 654
Karachi High Court 2002 Messrs PREMIER DISTRIBUTORS
Vs
FEDERATION OF PAKISTAN and others
Sales Tax Act (VII of 1990) 13, 3(1) , 13(1), 241 Judgement of high court

Effect of impugned SROs were earlier considered by High Court in Case of Messrs.  Wily Food Read More...


2002 PTD 654
Karachi High Court 2002 Messrs PREMIER DISTRIBUTORS
Vs
FEDERATION OF PAKISTAN and others
Sales Tax Act (VII of 1990) 13, 3(1) , 13(1), 241 Judgement of high court

Effect of impugned SROs were earlier considered by High Court in Case of Messrs.  Wily Food Read More...


2002 PTD 654
Karachi High Court 2002 Messrs PREMIER DISTRIBUTORS
Vs
FEDERATION OF PAKISTAN and others
Sales Tax Act (VII of 1990) 13, 3(1) , 13(1), 241 Exemption/Show Cause Notice/ petition

SRO No.580/1/91, dated 27-6-1991--SRO No.561 (1)/94, died 9.6-1994-Constitution of Pakistan (1973). Art. 199-Show-cause notice Demand of Read More...


2002 PTD 654
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 3, 6 ,7 ,34 Sale of plant and machinery, vehicles,

Scope of tax----Tax was Read More...


2002 PTD 300
Lahore High Court 2002 INTERNATIONAL BEVERAGES (PVT.) LTD
Vs
GOVERNMENT OF PAKISTAN through Additional Secretary, Ministry of Finance (Central Board of Revenue), Karachi and 2 others
Sales Tax Act (III of 1951) 2, 2(12) , 27(1) Refund of sales tax Term

Refund of sales tax Term “subject to the tax” as used in S. 2(12) of Sales Tax Act, 1951 with reference to exemption or Read More...


2002 PTD 311
Lahore High Court 2002 INTERNATIONAL BEVERAGES (PVT.) LTD
Vs
GOVERNMENT OF PAKISTAN through Additional Secretary, Ministry of Finance (Central Board of Revenue), Karachi and 2 others
Sales Tax Act (III of 1951) 2, 2(12) , 27(1) Partly manufactured goods

The definition of ‘partly manufactured goods’ is that they are goods which are to be incorporated into another article. So, these Read More...


2002 PTD 311
Appellate Tribunal Inland Revenue 2002
Vs
Sales Tax Act (VII of 1990) 5(b) , Sixth Sched Exemption/ Demand raised

S. 5(b) & Sixth Sched. S.R.O. No. 922(1)/99, dated 16-08-1999 Customs Act, 1969, Ss. 32(2) & 79(2)(4) Change in the rate of tax Read More...


2002 PTD 329
Supreme Court of Pakistan 2001 FECTO BELARUS TRACTORS LIMITED
Vs
PAKISTAN through Ministry of Finance Economic Affairs and another
Sales Tax Act (VII of 1990) S.3/ Notification S.R.O. No. 1189(1)/94, dated 11-12-1994 Exemption, withdrawal of

Exemption, withdrawal of/ Sales tax, levy of/ Import of tractors was exempted from payment of sales tax vide Notification S.R.O. No. 1189(1)94, dated 11-12-1994/ Petitioner had concluded the contract with the-exporter in respect of the imported goods and letter of Read More...


2001 PTD 1829
84 TAX 25
Supreme Court of Pakistan 2001 COLLECTOR, CENTRAL EXCISE, CUSTOM HOUSE, LAHORE AND OTHERS
Vs
MESSRS RIAZ BOTTLERS (PVT.) LTD., LAHORE AND OTHERS
Sales Tax Act (VII of 1990) S.3 Retail price/ Fixation of/ chilling charges

Retail price/ Fixation of/  Procedure/  Levy of Central Excise Duty/ Inclusion of chilling charges in retail price of aerated water/juices for recovery of excise duty/ Authorities included such charges while recovering central excise duty/ Manufacturers Read More...


2001 PTD 1854
2004 PTCL 298
Supreme Court of Pakistan 2001 DIVISIONAL DEPUTY COMMISSIONER OF SALES TAX and another
Vs
BHERAGHAT MINERAL INDUSTRIES
Sales Tax Act (VII of 1990) . Manufacture/ Crushing dolomite lumps into” chips and powder

Manufacture/ Crushing dolomite lumps into” chips and powder/ Not a process of manufacture/ No new commercial commodity produced/ Madhya Pradesh General Sales Tax Act, 1958 (2 of 1959), S.2(j), (r)(ii)/ Notification No.3326-1381/V-ST, dated October 11, 1977/ Read More...


2001 PTD 1908
246 ITR 230
Lahore High Court 2001 Messrs SYED BHAIS
Vs
CHAIRMAN, C.B.R. AND OTHERS
Sales Tax Act (VII of 1990) S. 3 Doctrine of “promissory estoppel"

Sales tax, recovery of/ Doctrine of “promissory estoppel” and vested right/ when not applicable/ Where the import had taken decisive step and opened the letters of credit before the withdrawal of exemption, the importer could not be asked to pay sales Read More...


2001 PTD 2167
83 TAX 388
Lahore High Court 2001 PAKISTAN MINERAL DEVELOPMENT CORPORATION SALT MINES, KHEWRA, JHELUM
Vs
SECRETARY, C.B.R, ISLAMABAD AND 2 OTHERS
Sales Tax Act (III of 1951) S. 7/ S.R.O. 9(1)83, dated 5-1-1983 Exemption/ Tax already paid on the Sulphur

Customs General Order, dated 10-9-1986/ Manufacture of Blasting Powder/ Chargeability to sales tax/ Exemption/ Tax already paid on the Sulphur, a component of blasting powder was deductible from the sales tax of the manufactured powder.

Sales tax on the Read More...


2001 PTD 2215
239 ITR 700
Lahore High Court 2001 SAPHIRE ENERGY LIMITED AND 10 OTHERS
Vs
PAKISTAN AND OTHERS
Sales Tax Act (VII of 1990) S. 13 Exemption of Sales tax / Discretion of Government

Exemption of sales tax and customs duty/ Discretion of Government/ Grant of exemption was a discretionary relief and Authority could or could not grant such relief in respect of any goods or class of goods and could great exemption on any terms and conditions Read More...


2001 PTD 2234