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COMMISSIONER INLAND REVENUE, LAHORE vs EAGLE CABLES (Pvt — 2025 SCMR 728 SUPREME-COURT

Case information

Citation
2025 SCMR 728 SUPREME-COURT
Court
Supreme Court of Pakistan
Year
2025
Reporter
SCMR
Parties
COMMISSIONER INLAND REVENUE, LAHORE vs EAGLE CABLES (Pvt
Subject matter
Criminal
Provisions referred to
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 EAGLE CABLES (Pvt.) LTD., LAHORE Ss.7, 8 (1)(d), 21, 47 & 73---Input tax adjustment---Invoices---Proof---Subsequent blacklisting of suppliers---Authorities denied adjustment of input tax on the ground that invoices relied upon by respondent/taxpayer were issued by the suppliers who had later been blacklisted---Validity---Authorities failed to provide any concrete evidence indicating that invoices were issued to respondent / taxpayer during any period of suspension or blacklisting---At the time purchases were made, the suppliers involved were neither blacklisted nor inactive---Payments for such purchases were processed through legitimate banking channels, adhering to procedures delineated in section 73 of Sales Tax Act, 1990---If a transaction was conducted while the suppliers were active and duly registered, invoices issued were not automatically invalidated by a subsequent black listing or suspension of the suppliers---Denial of refunds could not be justified solely based on lateral black listing of a supplier---All purchases according to Section 21(3) of Sales Tax Act, 1990 including the respondent/taxpayer, who procured goods before suppliers' registration were suspended or they were blacklisted, and who complied with the conditions outlined in section 73 of Sales Tax Act, 1990 were entitled to claim an adjustment of input tax---Demand raised by the Deputy Commissioner of Inland Revenue was unjustified, and as such it was rightly set aside by subsequent higher forums that reviewed the matter, affirming position of respondent/taxpayer---Petition for leave to appeal was dismissed and leave was refused.

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