Sales tax on Attock Refinery crude payments set aside by court
The Supreme Court held that payments for decanting and desalting crude oil are not taxable supplies, and that the State must prove every element of a tax.
The Supreme Court held that payments Attock Refinery Limited received for decanting and desalting crude oil are not taxable supplies.
The three-member bench, headed by Justice Munib Akhtar, set aside the Islamabad High Court's judgment and the Appellate Tribunal's decision.
The Court said crude oil stayed the same product, so the payments were an adjustment of the crude price rather than fees for services.
The Court said the State, not the taxpayer, must prove every essential element of a tax.