183/2017 Spl:Sales Tax Ref: A. M/s. Silver Surgical Complex (Pvt) Ltd. (Applicant) V/S Commissioner I-R Zone-IV (Respondent)
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui, Hon'ble Mr. Justice Agha Faisal
183/2017 Spl:Sales Tax Ref: A. M/s. Silver Surgical Complex (Pvt) Ltd. (Applicant) V/S Commissioner I-R Zone-IV (Respondent) Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui, Hon'ble Mr. Justice Agha Faisal Order Date: 13-AUG-21
Supplies involving exempt and taxable purchase cannot be treated in a generalized way. Applicant while having input tax adjustment of the above period forgot to apply rule 25(3) of the ibid rules 2006 which does not permit the adjustment of input tax in its entirety when they deal with both taxable and exempt supplies. --Learned counsel for the applicant has argued to the extent of claiming refund in terms of section 10 of the Sales Tax Act. The scheme of Section 10 caters for an event other than applicants case. In terms of the facts and circumstances of the case where input adjustment is claimed on both exempt and taxable supplies as is the case of applicant before lower forums, we have to apply an unambiguous provision that deals the event and i.e. 8(2) of the ibid Act which directly deals with the input tax in respect of the supplies involving both exempt and taxable supplies.