| Citation(s) |
|---|
| 2025 SLG 3823 2025 SLD 3823 = 2025 LHC 2627 |
Writ Petition No.17285 of 2025
PRESENT; (Muhammad Sajid Mehmood Sethi) Judge
Date of hearing: 09.04.2025. Petitioner by: Mr. Farrukh Ilyas Cheema, Advocate.
Respondents by: M/s. Muhammad Zain Qazi, Assistant Attorney General and Muhammad Saad Bin Ghazi, Assistant Advocate General. Mr. Bilal Munir, Advocate.
M/s Madina Steel Mills
VERSUS
Federation of Pakistan through Secretary, Revenue Division / Chairman, FBR, Islamabad & others
Law: Sales Tax Act, 1990
Section: 73, 21
Law: Sales Tax Rules, 2006
Section: 12
The petition challenging the order of charging extra and further tax during the suspension of the petitioner's sales tax registration is allowed. The court found the suspension was due to the revenue department’s error, later rectified, and held that the petitioner is entitled to relief by treating them equally to another similarly situated taxpayer, M/s. Ali Steel Re-Rolling Mills, who received such adjustment. it is a settled principle of law that no one should suffer on account of the mistake or negligence of a court or a government functionary.
Summary of the Judgment
Petitioner’s Sales Tax Registration Number (STRN) was suspended due to the revenue department’s negligence but was later restored.
Despite restoration, extra and further tax penalties were charged during the suspension period (October and November 2024).