SUI NORTHERN GAS PIPE LINES LIMITED vs COMMISSIONER INLAND REVENUE, LTO, LAHORE S

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SUI NORTHERN GAS PIPE LINES LIMITED VS COMMISSIONER INLAND REVENUE, LTO, LAHORE S.46---appellate Tribunal Inland Revenue---Constitution and powers---Decisions of Bench(s) of the appellate Tribunal Inland Revenue---Binding effect---Scope---Registered person (Sui Northern Gas Pipe Lines Ltd. /SNGPL) filed appeal before the appellate Tribunal Inland Revenue against order passed by Commissioner Inland Revenue (appeals) whereby he upheld the disallowance of input tax claimed in respect of UFG (Un-accounted For Gas) over and above the permissible limit as determined by the OGRa and input tax claimed under S. 8 of Sales Tax act, 1990---argument of the respondent / Department was that a decision of larger Bench of the appellate Tribunal Inland Revenue ('the Tribunal') was not binding on the present (smaller / Division) Bench of the Tribunal---Validity---Previously, there were some conflicting judgments of the Tribunal on the issue-in-hand, hence during the course of hearing of company's appeal STa No.833/LB/2016, a miscellaneous application was given for the constitution of Larger Bench to resolve the controversy---Larger Bench of the Tribunal was constituted on the request of the taxpayer and matter was decided in favour of company---There can be hardly any dispute that the Tribunal is a competent authority to pronounce on a question of law arising under the law including issue-in-hand, and it functions in a quasi-judicial manner ; its decisions are to be followed by the lower authorities unless these are upset by a higher Court--- according to a precedent followed by it, the Chairman of the Tribunal can constitute a larger Bench to resolve the conflicting views of various Benches of the Tribunal on the same issue---The decisions of such Larger Benches are binding on smaller Benches unless overruled by the High Courts or the Supreme Court or are distinguishable on facts clearly---Therefore, a decision of a larger Bench of the Tribunal has greater value as a precedent and it has to be preferred over the views expressed by the smaller Benches---Further, on the smaller Benches the view of larger Bench is binding---Viewed in this background, the appellant had rightly contended that the CIR(a) committed an error prejudicial to the interests of the appellant's rights when he failed to notice the decision of the larger Bench of the Tribunal---argument of the Department was misconceived that the decisions of the Larger Bench of the Tribunal are not binding on smaller bench---appellate Tribunal, following the ratio decendi settled by the Larger Bench of the Tribunal in STa No.833/LB/2016, held that the appellant (SNGPL) was entitled to input tax adjustment/claim incurred in respect of Un-accounted For Gas (UFG)---Commissioner Inland Revenue (appeals) erred in law while upholding the disallowance of input tax on this account after completely ignoring the decision of the Larger Bench of the Tribunal which was against the lawful rights of the appellant---Tribunal set-aside the impugned order passed by Commissioner Inland Revenue (appeals)---appeal filed by registered person (SNGPL) was allowed, in circumstances.

SUI NORTHERN GAS PIPE LINES LIMITED vs COMMISSIONER INLAND REVENUE, LTO, LAHORE S — 2024 PTD 1432 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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