COMMISSIONER INLAND REVENUE REGIONAL TAX OFFICE, PESHAWAR vs CHERAT CEMENT COMPANY LTD

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COMMISSIONER INLAND REVENUE REGIONAL TAX OFFICE, PESHAWAR VS CHERAT CEMENT COMPANY LTD. NOWSHERA. Ss. 7 & 66---Refund of claim---Relevant tax period---Limitation period---During 13-06-1997 to 05-09-2000 supply of cement was exempted from tax. The respondent or taxpayer claimed refund of tax paid during the period of exemption. Validity: Since the relevant tax period did not and could not exist in the period of exemption, no date within that period could serve as the starting point of limitation envisaged by Section 66 of the Sales Tax Act, 1990. The end of the period of exemption did not mark the last day for the start of limitation since up to that point in time there was in law no time period. If at all any question of limitation could arise under Section 66 of the Sales Tax Act, 1990, the date for its starting would and could only lie in the successive time periods that had become operative after the end of the exemption. For purposes of computing limitation, time did not begin to run from the end of the period of exemption or any other date prior thereto located within that period. The period of exemption ended on 05-09-2000 and the application for refund was made by end August or beginning September 2001, which was well within or at most towards the end of a period of one year from the end of the exemption. Limitation did not begin to run from 05-09-2000 or any date prior thereto but rather, if at all, from the successive time periods after that date. The claim was well within time and could not be defeated or denied on the ground of being time-barred. The Supreme Court declined to interfere in the matter as the High Court and Appellate Tribunal Inland Revenue had correctly concluded that the respondent or taxpayer was entitled to the refund of the remaining amount of Rs. 6,439,608. The appeal was dismissed.

COMMISSIONER INLAND REVENUE REGIONAL TAX OFFICE, PESHAWAR vs CHERAT CEMENT COMPANY LTD — 2026 PTD 406 SUPREME-COURT

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