| Case ID |
177b0e1b-6754-44c3-a585-cf440147d082 |
| Body |
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| Case Number |
NEW STA No. 437/LB/2016 |
| Decision Date |
May 23, 2016 |
| Hearing Date |
Apr 22, 2016 |
| Decision |
The appeal was allowed as the Order-in-Original dated 14.01.2016 was found to be time barred, having been issued 471 days after the show cause notice of 18.08.2014. The provisions of the Sales Tax Act, particularly Section 11(5), necessitate that orders must be made within 120 days unless an extension is granted, which was not evidenced in this case. The Tribunal upheld the significance of adhering to the law of limitation as it bears substantial weight on the merits of the case. The earlier judgment of the Lahore High Court further reinforced this decision by highlighting jurisdictional issues arising from delays beyond the prescribed limits. |
| Summary |
The case revolves around M/s. Auto Craft challenging the Order No.27/1575 which demanded recovery of sales tax due to claimed inadmissible input tax adjustments against invoices from blacklisted units. The Tribunal found that procedural delays in issuing the Order-in-Original invalidated its jurisdiction, thereby siding with the appellant. This decision highlights the critical nature of compliance with statutory timelines in tax law disputes, reinforcing the necessity for tax authorities to adhere to legal provisions strictly. Key terms include 'sales tax recovery', 'legal compliance', 'jurisdictional authority', and 'tax law limitations'. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/s. Auto Craft, Lahore,
Directorate of Intelligence & Investment-FBR, Lahore
|
| Judges |
MUHAMMAD WASEEM CH., JUDICIAL MEMBER,
MASOOD AKHTAR SHAHEEDI, ACCOUNTANT MEMBER
|
| Lawyers |
Syed Zulfiqar Ali, Advocate,
Mr. Faisal Asghar, DR
|
| Petitioners |
M/s. Auto Craft, Lahore
|
| Respondents |
The CIR, RTO-II, Lahore
|
| Citations |
2016 SLD 1092
|
| Other Citations |
2008 PTD 578,
2009 PTD 762
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3,
6,
7,
8A,
10,
22,
23,
26,
34,
33(11),
33(13)
|