COMMISSIONER INLAND REVENUE, ZONE-I, LTO, KARACHI vs PAKISTAN STATE OIL COMPANY LIMITED, KARACHI Ss

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COMMISSIONER INLAND REVENUE, ZONE-I, LTO, KARACHI VS PAKISTAN STATE OIL COMPANY LIMITED, KARACHI Ss. 2(46)& 11(2)---Sales Tax Notification S.R.O. 911(I)/2007 dated 10.09.2007---FBR Letter No. 1(17) STR/2000---Supply of oil products by Oil Marketing Company (Pakistan State Oil Company Limited /PSO)---Price Differential Claims ('PDCs') receipts---Legal character---Scope---Value of supply---Scope--- Sales tax, non-levy of---Department issued Show-Cause Notices to Registered Person for non-payment of sales tax on Price Differential Claim ('PDC') receipts having been received from the Government of Pakistan---Assessment order was passed against (Registered Person /PSO) raising sales tax demand along with a penalty equal to the principal amount and default surcharge---Department approached the Appellate Tribunal Inland Revenue ('Tribunal') as the Commissioner Inland Revenue (Appeals) ['CIR (Appeals)'] deleted the entire demanded amount (the sales tax as well as penalty and default surcharge) on the ground of limitation prescribed under S. 11(5) of the Sales Tax Act, 1990---Validity---In the present case the respondent (Registered person /PSO) found support for non-levy of sales tax on PDCs from the Sales Tax Notification S.R.O. 911(I)/2007 dated 10.09.2007, issued by the Revenue Division( 'the Notification 2007'), which expressly excluded PDCs,as notified by the Federal Government from the import value and value of supply of High-Speed Diesel (HSD) for the purposes of sales tax on both imports and local supply---Notably, HSD also forms part of the subject matter of the impugned assessment order---No subsequent legal instrument repealing or modifying the Notification 2007 had been placed on record by the Department---Thus, issuance, validity or applicability of the Notification 2007 was undisputed and the Department's reliance on outdated/withdrawn administrative interpretations on FBR Letter No.1(17) STR/2000, stood legally refuted---Appeal filed by the Department was dismissed, in circumstances.

COMMISSIONER INLAND REVENUE, ZONE-I, LTO, KARACHI vs PAKISTAN STATE OIL COMPANY LIMITED, KARACHI Ss — 2025 PTD 1803 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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