| Citation(s) |
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| 2026 SLG 1464 2026 SLD 1464 = 2026 PLJ 13 |
Supreme Court of Pakistan
C.P. No. 4579 of 2023, decided on 9.10.2025. (Against the order dated 15.11.2023 of the Islamabad High Court, Islamabad passed in S.T.R. No. 15/2016)
Presented By: Munib Akhtar, Muhammad Shafi Siddiqui and Miangul Hassan Aurangzeb, JJ.
Syed Rifaqat Hussain Shah, AOR/ASC, Mr. Fazle-e-Rabi, Dy. Director, AIOU and Mr. M. Ali Akbar, Treasury Officer, AIOU for Petitioner. Dr. Farhat Zafar, ASC & Aysha Jamal, Addl. Commissioner, Sehr Ali, AC for
Respondent. Date of hearing: 1.10.2025.
C.P. No. 4579 of 2023, decided on 9.10.2025. (Against the order dated 15.11.2023 of the Islamabad High Court, Islamabad passed in S.T.R. No. 15/2016)
Presented By: Munib Akhtar, Muhammad Shafi Siddiqui and Miangul Hassan Aurangzeb, JJ.
Syed Rifaqat Hussain Shah, AOR/ASC, Mr. Fazle-e-Rabi, Dy. Director, AIOU and Mr. M. Ali Akbar, Treasury Officer, AIOU for Petitioner. Dr. Farhat Zafar, ASC & Aysha Jamal, Addl. Commissioner, Sehr Ali, AC for
Respondent. Date of hearing: 1.10.2025.
M/s. ALLAMA IQBAL OPEN UNIVERSITY--Petitioner
VERSUS
COMMISSIONER INLAND REVENUE, WITHHOLDING TAX ZONE, REGIONAL TAX OFFICE, ISLAMABAD--Respondent
Law: Sales Tax Act, 1990
Section: 11(4)(4A)
Law: Constitution of Pakistan 1973
Section: 199
PLJ 2026 SC 13 [Appellate Jurisdiction] Sales Tax Act, 1990 (III of 1990)-- ----Ss. 11(4)(4A)--Constitution of Pakistan, 1973, Art. 199--Sales tax--Withholding agent--Self printing of educational maternal--issuance of show-cause notice--Order in original passed--Appeal--Dismissed by commissioner--Appeal to appellate tribunal--Allowed--Reference allowed--Scope of recovery--Period prior to statutory amendment-- Provisions of Section 11(4) of Act relate to short payment of tax or erroneous issuance of refund due to inadvertence, error or misconstruction--There was, however, nothing in Section 11(4) which deals with responsibility of withholding of taxes--Situations and events demonstrated in show-cause notice were, in fact, covered in terms of Section 11(4A) which was introduced by Finance Act, 2016, whereas, tax periods disclosed in show-cause notice were from July, 2012 to June, 2013-- We are, therefore, of view that provisions of Section 11(4) of Act were wrongly applied--Appeal allowed. [Pp. 15 & 16] A Judgment Muhammad Shafi Siddiqui, J.--The petitioner being a university is involved in distance learning education for which the university prints its educational material by itself, instead of getting it printed from printers/publishers outside. In consequence of such activity the department treating the petitioner as withholding agent issued a show-cause notice dated 30.12.2014 and hence made it responsible to deduct and deposit sales tax on taxable goods and services as were supplied to it. It is claimed that in accordance with Rules 2 and Rule 3 of the Sales Tax Special Procedure (Withholding) Rules, 2007 promulgated vide SRO 660(I)/2007 dated 30.06.2007 the petitioner was liable to deduct 1/5th of applicable sales tax from its registered suppliers/services providers and to deduct whole of the sales tax at the applicable rate of the value of taxable supplies/services made to it from the payment due to its un-registered suppliers/service providers and consequently to file return. Since the petitioner failed to discharge such responsibility, the said notice was issued. In consequence to the said notice,…