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AYAN TRADING COMPANY, FAISALABAD vs COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD Ss — 2022 PTD 783 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

Case information

Citation
2022 PTD 783 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN
Year
2022
Reporter
PTD
Parties
AYAN TRADING COMPANY, FAISALABAD vs COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD Ss
Subject matter
Tax & Customs
Provisions referred to
S. 73; 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

AYAN TRADING COMPANY, FAISALABAD VS COMMISSIONER INLAND REVENUE (APPEALS), RTO, FAISALABAD Ss.21 & 73---De-registration, blacklisting and suspension of registration---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 transactions in addition to verifying normal and operative status of his suppliers---Both necessary conditions of verifying genuineness of suppliers from e-portal of FBR for its operative status and sufficient condition of making payments through Banking channel to ascertain the varsity of such transactions were complied with by appellant---Legislature had consciously given a right to a buyer in such cases to reclaim input tax so paid---Input tax adjustment of the appellant was denied only for the reason that the suppliers of the appellant were subsequently blacklisted---Held; subsequent blacklisting did not disentitle the buyer from his lawful right of input tax in respect of invoices issued when the supplier was a registered and an active person unless those invoices were specifically declared fake and had direct nexus with blacklisting---Appeal was accepted, impugned show cause notice and subsequent orders of both the authorities below being illegal and unlawful were set aside.

Other judgments reported in 2022 PTD

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