Order / Judgment No: Civil Petition No.2336 of 2025
Dated: 30 June, 2025
| Citation | SCMR 2020 |
|---|---|
| Court | Supreme Court of Pakistan |
| Classification | Taxation |
| Taxation Ruling | Against Department |
| Before | Justice Aqeel Ahmed Abbasi, Justice Munib Akhtar |
| Law(s) Discussed | Sales Tax Act, 1990 |
| Keywords | Sections 2(37), 6, 7, 8, 22, 23, 26, 33, 34, 46, 47, 73, sales tax, input tax adjustment, fake invoices, flying invoices, Section 73, blacklisted suppliers, tax fraud, show cause notice, burden of proof |
Final Judgment / Remarks
| Main Question / Issue |
| Whether the input tax adjustment claimed by the taxpayer could be disallowed solely on the basis of allegations of fake/flying invoices, without concrete evidence that the suppliers were blacklisted during the relevant tax period or that the transactions were fictitious. |
| Final Judgment Remarks |
| The Supreme Court dismissed the department's petition, holding that the show cause notice and tax recovery orders were based on vague and presumptive allegations without evidence. The department failed to establish that the suppliers were blacklisted during the relevant tax period or that invoices were fake. Concurrent findings by the Appellate Tribunal and High Court were upheld. |
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