Amnesty

2014 PTD 353 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN Judicial Precedent

Ss. 33 & 34S.R.O. 648(I)/2011 dated 25-6-2011Offences and penaltiesDefault surchargeAmnestyAdjustment of refund

Revenue had adjusted the adjudged principle amount of sales tax against its refund in consequence of a letter of the taxpayer

Federal Board of Revenue, at the relevant time, issued S.R.O. 648(I)/2011 dated 25-6-2011 which applied to the taxpayer's case as well

Request of the taxpayer on this score in the light of amnesty order/S.R.O. 648(I)/2011, dated 25-6-2011 was allowed and order-in-original was modified accordingly.

2013 PTD 566 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN Judicial Precedent

Ss. 8, 19(1), 19(3)(c) & 3ASales Tax Act (VII of 1990), 22 & 73Constitution of Pakistan, Art. 25Special Procedure Rules, 2007S.R.O. 648(I)/2011 dated 25-6-2011S.R.O. 655(I)/2007 dated 29-6-2007Default surchargeOffences, penalties, fines and allied mattersAmnestyRequired sales tax record maintained under S.22 of the Sales Tax Act, 1990 was submitted

Detection report was issued by alleging that taxpayer had charged and collected Special Excise Duty on their supplies but failed to deposit the same in national exchequer

On the basis of detection report, show cause notice was issued for payment of Special Excise Duty along with default surcharge without mentioning any penalty

Taxpayer contended that in other cases default surcharge had only been charged after adjustment of special excise duty paid on import and local purchases and no penalty was charged; that according to Art. 25 of the Constitution, all citizens are equal; that orders passed on the basis of grounds not mentioned in the show cause notice were ab initio illegal and void and no demand could be raised on the basis of illegal notice; that Revenue had admitted that all documents regarding adjustment of input of Special Excise Duty were provided i.e. purchase register, purchase invoice, bill of entries and payment proof under S.73 of the Sales Tax Act, 1990 and paid the balance amount by availing amnesty scheme; and that if the taxpayer had deposited the principle amount of Special Excise Duty collected at the relevant time and claimed benefits of amnesty, there was no tax fraud on the part of taxpayer

Validity

No fraud was alleged or confronted by the department in the show cause notice or in subsequent proceedings

Even otherwise Government had exempted whole of the amount of default surcharge and penalties payable

Assessing Officer himself admitted that registered person had provided all the documents regarding adjustment of input of Special Excise Duty i.e. purchase register, purchase invoice, bill of entries and proof of payment under S.73 of the Sales Tax Act, 1990 and paid balance amount by availing amnesty scheme

By allowing credit of tax paid under amnesty scheme, the Assessing Officer himself admitted the availability of amnesty scheme to the taxpayer

Levy of default surcharge under S.8, penalty under S.19(1) and fine under S.19(3)(c) of the Federal Excise Act, 2005 were not attracted in circumstances

Order of Assessing Officer was cancelled by the Appellate Tribunal being not maintainable in the eye of law and order of First Appellate Authority was vacated.