RUBY STEEL CORPORATION (PVT.) LTD. vs COMMISSIONER INLAND REVENUE, RTO, LAHORE S

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RUBY STEEL CORPORATION (PVT.) LTD. VS COMMISSIONER INLAND REVENUE, RTO, LAHORE S.3(1a)---SRO 648(I)/2013 dated 09.07.2013---SRO 585(I)/2017 dated 01-07-2017---SRO No.1223(I)/2021 dated 17-09-2021---Taxable supplies made by steel sector---Unregistered buyers---Levy of further tax, exemption from---Scope---Kind of supplies relating to "steel sector"---Scope---appellant (Registered Person / Steel Corporation ) filed appeal against further tax concurrently levied upon their supplies---Submission made by the Department / Respondent was that steel pipes were not covered under steel sector and the observations made by the lower authorities below were correct that that steel sector referred to steel melters, re-rollers and ship breakers---Validity---It is clear from SRO 648(I)/2013, SRO 585(I)/2017 and SRO 1223(I)/2021 (relevant Notifications) that the Federal Government decided not to charge Further Tax on the given rate against supplies made by certain sectors or against certain items---Serial No.14 added vide SRO 1223(I)/21, while amending SRO 648(I)/2013, clearly exempts supplies made by steel sector---Thus, submissions made by the Department (that steel pipes are not covered under steel sector) is misconceived rather absurd---In general terms, any product which is made up of steel is covered under the steel sector and bifurcating certain products e.g. steel pipes holding them outside the ambit of steel sector just to charge Further Tax is contrary to the exemption given in the relevant Notifications---Further , the observations made by the lower authorities below (that steel sector refers to steel melters, re-rollers and ship breakers) is highly misconceived as those entities are already added at Sr. No.9 vide SRO 585(I)/2017 and if steel sector only referred to steel melters, re-rollers and ship breakers then there was no need of inserting Sr. No.14 which exempted charge of Further Tax against supplies made by steel sector---The will of the legislature/government is evident from the insertion of Sr. No.14 in the presence of Sr. No.9, therefore, giving any restrictive meaning to steel sector or confining the steel sector to only steel melters, re-rollers and ship breakers would not only defeat the purpose of the relevant Notifications, rather would be totally incorrect interpretation---The tax is to be charged as per the law of the land and if a particular product or sector is given a benefit under any law or notification then that has to be given in its entirety without any hesitation---Even SRO 1223(I)/2021 was issued on 17.09.2021 and supplies confronted in the Show-Cause Notice(as tabulated in the order-in-original) were related to tax periods December 2021 onwards, and were made subsequent to the issuance of the SRO 1223(I)/2021---Both the officers below have misconstrued the term of "steel sector" and charged/upheld Further Sales Tax in the presence of clear exemption given under the relevant Notifications/SROs---appellate Tribunal Inland Revenue set aside impugned orders passed by the Tax authorities below being illegal, unlawful and without any basis---appeal, filed by taxpayer, was allowed, in circumstances.

RUBY STEEL CORPORATION (PVT.) LTD. vs COMMISSIONER INLAND REVENUE, RTO, LAHORE S — 2025 PTD 1244 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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