The Supreme Court of Pakistan has ruled that claims for input tax adjustment on construction materials, such as cement and steel used in the construction of factories or other immovable structures, are not admissible under the Sales Tax Act, 1990.
The court further emphasized that mandatory legal requirements, particularly those concerning banking channels and the deposit of tax into 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 Commissioner Inland Revenue.
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