COMMISSIONER INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR vs SHAH TRADERS GHURGOSHTI, SWABI S — 2025 SCMR 2016 SUPREME-COURT

Case information

Citation: 2025 SCMR 2016 SUPREME-COURT
Court: Supreme Court of Pakistan
Year: 2025
Reporter: SCMR
Parties: COMMISSIONER INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR vs SHAH TRADERS GHURGOSHTI, SWABI S
Subject matter: Tax & Customs
Provisions referred to: S. 40B---P; 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, REGIONAL TAX OFFICE, PESHAWAR VS SHAH TRADERS GHURGOSHTI, SWABI S. 40B---Posting of Inland Revenue Officer---Federal Board of Revenue, powers of---Compliance by dealer/distributor of principal registered person---Scope---Dealer/distributor of principal registered person being aggrieved of a statutory compliance via letter under section 40B of the Sales Tax Act filed a constitutional petition before High Court, which was allowed---Held: Section 40B of the Sales Tax Act, 1990,stipulates that the Federal Board of Revenue may post officer of Inland Revenue to the premises of registered person or class of such persons to monitor production, sales of taxable goods and the stock position---It is not just the production but the sale of taxable goods as well as the stock position which is to be determined through the machinery provided under the Sales Tax Act, 1990---Indeed, the application of section 40B is not limited to the production unit and/or the principal registered person alone; it applies to the premises of registered person or class of such persons to monitor production via sale of such taxable goods and the stock position---Respondent, being a dealer/distributor of principal registered person, falls within the class and the purpose of section 40B is not just the production but it includes sale of taxable goods via dealers/distributors and the stock position---Hence, the reasons extended in the impugned judgment passed by the High Court did not reconcile with the frame of section 40B of the Sales Tax Act, 1990---Supreme Court set aside and the impugned judgment by converting the petition into appeal and allowing the same.

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