The Supreme Court of Pakistan has ruled that claims for adjustment of input VAT on construction materials such as cement and steel used for construction of factories or other fixed structures are not admissible under the Sales Tax Act, 1990. The court further emphasized that mandatory statutory requirements, particularly those relating to banking channels and payment of tax to the national exchequer, could not be overlooked. A three-member bench comprising Chief Justice Yahya Afridi, Justice Irfan Saadat Khan and Justice Shakeel Ahmed accepted the civil appeal filed by the Revenue Commissioner.
The SC maintains the FBR’s position in the tax case
