COMMISSIONER INLAND REVENUE vs MALIK ENTERPRISES Ss — 2021 PTD 945 LAHORE-HIGH-COURT-LAHORE

Case information

Citation: 2021 PTD 945 LAHORE-HIGH-COURT-LAHORE
Court: Lahore High Court
Year: 2021
Reporter: PTD
Parties: COMMISSIONER INLAND REVENUE vs MALIK ENTERPRISES Ss
Subject matter: Tax & Customs
Provisions referred to: S. 8B; S. 8; S. 66; Sales Tax Act

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

COMMISSIONER INLAND REVENUE VS MALIK ENTERPRISES Ss. 8, 8B, 66, 3 & 47---Tax Credit not allowed---Adjustment of input tax---Claim of 100% adjustment of input tax---Nature of S.8B(1) of Sales Tax Act, 1990---Scope---Department impugned order of Appellate Tribunal whereby it was held that taxpayer could adjust 100% of input tax---Contention of Department, inter alia, was that per S.8B(1) of Sales Tax Act, 1990, taxpayer could not adjust more than 90% of input tax---Validity---Per S.8 of Sales Tax Act, 1990 by allowing 90% adjustment in input tax, the law did not disallow adjustment of remaining 10% tax, and by retaining said 10% adjustable amount, taxpayer was compelled to file proper documents to obtain refund as per S.66 of Sales Tax Act, 1990---Section 8B(1) of Sales Tax Act, 1990 was therefore procedural in nature which was followed by procedure under S.66 of the Act, which catered to entitlement of taxpayer to claim 10% refund---Allegation against taxpayer, in the present case, was not that input tax adjustment was not due to taxpayer and was illegally claimed and in absence of any mala fide, either attributed or proved against taxpayer, it would be otiose to drive such taxpayer to run through entire process for claiming adjustment again, which was not intention of Legislature ----Department could have, at worst, proceeded to impose penalty for non-compliance of a procedural formality under Ss.8B(1) & 66 of Sales Tax Act, 1990 and nothing beyond the same---Reference was answered, accordingly.

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