SHC disposes STRA in favor of Pakistan Steel Mills

KARACHI: An appellate bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Abdul Malik Gaddi disposed of a Special Tax Reference Application filed by Commissioner Inland Revenue Zone-II against Pakistan Steel Mills (PSM) Corporation (Pvt) Ltd.

The applicant questioned an order passed by Appellate Tribunal, Inland Revenue in STA no 23/KB of 2013 (Tax Period–March 2012) holding that PSM is entitled to the benefit of Amnesty SRO 548 (I)/2012.

At the outset of hearing, Shakeel Ahmed Advocate, counsel for applicant submitted that since the short levied amount of Sales Tax was paid by the respondent PSM after expiry of last date i.e June 30, 2012. In view of above fact the respondent could not claim amnesty in terms of SRO 545 (1) of 212 and SRO 768 (1) of 2012 as principal amount due to be paid in cash submitted the counsel for applicant.

The bench perused the record, documents and orders passed by the officers of the Inland Revenue and noted that applicant failed to adjust the amount of refund against the Sales Tax to be recovered or short levied.

The applicant did not allow the benefit of Amnesty to the respondent on ground of nonpayment of principal amount of ST, the bench said. It further noted that respondent PSM requested for the refund or adjustment of such excess amount of ST as the PSM was facing a financial crunch but the applicant department  did not accede to the request without any lawful excuse.

“We are of the opinion that admitted refund becomes due as soon it is dult assessed by the departmental authorities, therefore any delay in payment of refund of such amount to the registered person or making adjustment for any tax liability cannot be attributed to the tax payer, who cannot be treated as a defaulter”, the bench held.

 The bench parting with the judgment said that it could not find any error or illegality in the order passed by the ATIA.

Bookmark the permalink.

Comments are closed.