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COMMISSIONER INLAND REVENUE, LAHORE vs ARCO PLASTICS (PVT — 2025 PTD 552 LAHORE-HIGH-COURT-LAHORE

Case information

Citation
2025 PTD 552 LAHORE-HIGH-COURT-LAHORE
Court
Lahore High Court
Year
2025
Reporter
PTD
Parties
COMMISSIONER INLAND REVENUE, LAHORE vs ARCO PLASTICS (PVT
Subject matter
Tax & Customs
Provisions referred to
S. 8-B---I; S. 8-B; 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

COMMISSIONER INLAND REVENUE, LAHORE VS ARCO PLASTICS (PVT.) LIMITED LAHORE S. 8-B---Input tax adjustment---100% input tax instead of 90%, adjustment of---Procedural lapse or otherwise---10% excess input tax adjusted, recovery of---Department filed Reference Application as Appellate Tribunal Inland Revenue held recovery of excess amount from the taxpayer as not justified---Validity---Record revealed that respondent/taxpayer adjusted 100% input tax instead of 90% in violation of S. 8-B of the Sales Tax Act, 1990---Admittedly, respondent-taxpayer had deposited its total tax liability---Applicant/ Department was seeking recovery of said 10% excess input tax adjustment amount---Even if the said amount was paid, that would be part of carried forward amount and ultimately, respondent / taxpayer would be entitled to claim input tax adjustment of the said amount as well at the end of the year---Hence, the claim of 100% tax adjustment was only a procedural lapse---Thus, recovery of said amount from respondent / taxpayer was not justified---Answer of the High Court to the proposed question was in negative i.e. against Applicant / Department and in favour of respondent-taxpayer subject to payment of penalty and default surcharge as per order-in-original---Reference application, filed by the Department, was disposed of accordingly.

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