| Citation(s) |
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| 2025 SLG 1492 2025 SLD 1492 = 2025 SCP 224 = 2025 PTCL 863 = (2025) 132 TAX 146 = 2026 PTD 281 = 2026 SCMR 368 |
Civil Petition No. 2672-L of 2024 [Against the order dated 15.10.2024 of the Lahore High Court, Multan Bench passed in Sales Tax Reference No. 43/20230]
Present: Mr. Justice Munib Akhtar Mr. Justice Muhammad Shafi Siddiqui Mr. Justice Miangul Hassan Aurangzeb
For the Petitioner: Mr. Muhammad Ajmal Khan, ASC. [Via video-link from Lahore] For the
Respondents: Mr. Muhammad Yahya, ASC. Date of Hearing: 27.05.2025.
M/s Rafhan Maize Products Co. Limited. … Petitioner
VERSUS
The Appellate Tribunal Inland Revenue,
Law: Sales Tax Act, 1990
Section: 3(1A), 47, 3, 11. 26, 33, 34, 2(14)
Summary
The petitioner, a subsidiary of a multinational company engaged in the sale of food products, filed sales tax returns for various periods in 2013 and 2014. Upon scrutiny, the tax authorities issued a show cause notice alleging that the petitioner failed to pay a further tax of 1% on supplies made to unregistered persons, violating sections 3(1A), 6, 7, 22, 23, and 26 read with section 2(14) of the Sales Tax Act, 1990. The petitioner contested this, providing evidence that supplies were made only to registered persons.
The Deputy Commissioner Inland Revenue partially accepted the petitioner’s claim but imposed recovery of a large amount along with surcharge and penalty. Subsequent appeals reduced the amount somewhat but largely upheld the tax demand. The petitioner then filed a reference under section 47 of the Sales Tax Act, raising three legal questions regarding the interpretation and application of section 3(1A), particularly concerning whether suspension or blacklisting of a registered person equates to being unregistered for the purpose of levying further tax.