Law: Federal Excise Act, 2005

Section: 8(a)(b)(ca)

Law: Sales Tax Rules, 2006

Section: R.25(3)

Law: Federal Excise Act, 2005

Section: 6,7

Law: Sales Tax Act, 1990

Section: 3,2(41),8,8(2),41(2)

(a) Federal Excise Act (VII of 2005)----S.8(a)(b)(ca)---Sales Tax Act (VII of 1990), S.8---S.R.O. 550 (I)/2006 dated 5-6-2006---Tax Credit not allowed---Telecommunication services---PCT Heading 98.12---Audit period July-2005 to June-2009---Retrospective application of provision of S.8 of the Sales Tax Act, 1990---Taxpayer raised legal objection regarding unlawful retrospective application of ClS.(a), (b) and (ca) of S.8 of the Sales Tax Act, 1990 amended through Finance Act, 2008 and contended that words "or services" were inserted vide Finance Act, 2008 effective from 1-7-2008 and could not be made applicable to the entire period of audit i.e. July, 2005 to June, 2009---Validity---Telecommunication services were included in the S.R.O. 550(I)/2006 dated 5-6-2006 which prescribed the levy and collection of federal excise duty on services against Value Added Tax mode and did not provide the method for apportionment of tax---Said S.R.O. was effective from 5-6-2006 and the tax liability adjudged by the revenue covered the period July, 2005 to June 2009 which was not desirable---Case of the taxpayer was of excess input adjustment---Said S.R.O. had wrongly been relied upon by the Revenue so far the excess claim of input tax adjustment was concerned---Appellate Tribunal answered the question in favour of the taxpayer and against the Revenue. 1983 PTD 713 H.C. and Sales Tax Appeal No. 236/LB/2009, F-Ex-No.100/LB/2009 rel. (b) Sales Tax Act (VII of 1990)----Ss.8(2) & 41(2)---Tax Credit not allowed---Taxable and non-taxable supplies---Apportionment of tax---With all legal exceptions, if at all the apportionment of tax adjustment was to be applied by the Revenue in terms of subsection (2) of S.8 of the Sales Tax Act, 1990 its effective date was 1-7-2008 as against the tax liability created from 1-7-2005 to 30-6-2009 which was against the norms of principles of natural justice. (c) Interpretation of statutes----Substantive law---Primary law---Substantive law shall always have an overriding effect over the primary law and any amendment made through subsequent legislation shall not adversely affect the rights of the taxpayer. (d) Sales Tax Act (VII of 1990)----Ss.8(2)…

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