NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. vs COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L

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NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. VS COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L.T.O.) Ss. 113, 122 & 133(1)---Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997), Ss. 17, 21(2) & 35---Reference---Transmission license---Sale and purchase of electricity---Amendment of assessment---Applicant/National Transmission and Dispatch Company (NTDC) was licensed by National Electric Power Regulatory Authority to transmit electricity from Generation Companies (GENCOs) to Distribution Companies (DISCOs)---Dispute was with regard to charging of minimum tax on turnover---Validity---There was no difference in the functions of Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) as it existed now and functions performed by CPPA of NTDC prior to 03-06-2015---CPPA-G was incorporated as a special purpose vehicle and was tasked with administering a Market Settlement System for commercial transactions envisaged by Agreement---DISCOs remained principal and primary obligor in respect of payments and obligations of purchaser (a DISCO in a particular case) towards seller or supplier (GENCOs) under the power purchase agreement---NTDC merely recovered the Use of System Charges and similarly CPPA-G was entitled to market operation fee while operating Market Settlement System---DISCOs were paying minimum tax on turnover including purchase price of electricity---Electricity which was purchased from GENCOs by DISCOs was made liable to minimum tax on the turnover of DISCOs and FBR did not demand that tax from NTDC as well---Purchase of electricity was not done firstly by NTDC and thereafter NTDC did not sell electric power to DISCOs at inflated price---Authorities did not produce any evidence to such effect---NTDC would be falling in breach of its transmission license if it were to engage in such a business---High Court set aside the orders passed by Appellate Tribunal Inland Revenue---Reference was allowed accordingly.

NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. vs COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L — 2024 PTD 599 LAHORE-HIGH-COURT-LAHORE

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