| Case ID |
2e61c8a6-7185-4baa-8423-f13a48be39db |
| Body |
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| Case Number |
M.As. (A.G) Nos.53/KB to 60/KB of 2012 and S.T.As, |
| Decision Date |
Aug 30, 2009 |
| Hearing Date |
Jul 30, 2012 |
| Decision |
The Tribunal has vacated the impugned orders of the Collector (Appeals) due to procedural lapses under the Sales Tax Act, 1990 and Qanun-e-Shahadat (10 of 1984). The show-cause notices were issued well beyond the fourteen-day period prescribed, rendering them time-barred and void. Additionally, discrepancies between the amounts in show-cause notices and impugned orders were identified. The adjudicating officer failed to follow the procedures outlined in S.R.O. No.575(I)/2002 dated 31-8-2002, particularly in not obtaining conclusive recommendations from senior officials within the stipulated time. As a result, the Tribunal found the orders illegal and without jurisdiction, directing the Adjudicating Authority to issue refunds in accordance with the law. |
| Summary |
In the case of M.As. (A.G) Nos.53/KB to 60/KB of 2012 and S.T.As, Nos.50/K, 75/K, 78/K to 81/K, 100/K, 101/K of 2009, the Appellate Tribunal Inland Revenue rendered a pivotal decision on August 30, 2009, following a hearing on July 30, 2012. The petitioner, Messrs LATIF KNITS of Karachi, contested the rejection of their tax refund claims by the Central Income Registry (C.I.R.) Enforcement RGII Collection S.T. & F.E., Karachi. The case, cited in journals such as 2013 SLD 277, 2013 TAX 29, and 2013 PTD 158, delved into critical sections of the Sales Tax Act, 1990, specifically Sections 10, 10(4), and 8A, as well as Section 117 of the Qanun-e-Shahadat (10 of 1984). Presided over by Judges Syed Muhammad, Jamil Raza Zaidi, and Zarina N. Zaidi, the Tribunal meticulously examined procedural adherence, particularly focusing on the issuance of show-cause notices under S.R.O. No.575(I)/2002 dated August 31, 2002. It was uncovered that the notices were issued significantly beyond the fourteen-day statutory period, thereby breaching the procedural mandate and rendering them invalid. Furthermore, inconsistencies were found between the amounts specified in the show-cause notices and those in the subsequent orders, undermining the legitimacy of the refund rejections. The adjudicating officer's failure to follow the comprehensive refund examination process, which includes timely submission of reports and necessary audits as per the governing S.R.O., was a critical factor in the Tribunal's decision. The legal representatives for the appellant, including Advocate Imran Iqbal, argued the time-barred nature of the notices and the lack of jurisdiction, citing relevant case laws such as 2012 PTD 34 and 2005 MLD 1329 rel. On the defense side, representatives S.M. Javed and Kazi Afzal contended that the refund claims were rightfully rejected due to non-compliance with invoice summary submissions and discrepancies in tax deposits. However, the Tribunal upheld the appellant's stance, emphasizing the importance of strict procedural compliance and the protection of taxpayer rights against administrative oversights. The decision not only highlights the critical nature of adhering to statutory timelines and procedures in tax refund processes but also reinforces the imperative for revenue authorities to maintain transparency and accuracy in their operations. By vacating the Collector's orders and directing the Adjudicating Authority to comply with the law, the Tribunal underscored the judiciary's role in ensuring fair and lawful tax administration practices. This case serves as a landmark for future tax refund litigations, emphasizing procedural integrity and the necessity for timely and accurate administrative actions within the framework of Pakistan's tax laws. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Federal Board of Revenue,
Additional Collector,
Sales Tax Automated Refund Repository Computer System (STARR),
Messrs Gugi Industries (Pvt.) Limited,
Messrs Sana Corporation (Pvt.) Ltd.
|
| Judges |
SYED MUHAMMAD,
JAMIL RAZA ZAIDI, JUDICIAL MEMBER,
ZARINA N. ZAIDI, ACCOUNTANT MEMBER
|
| Lawyers |
Imran Iqbal for Applicant,
S.M. Javed (A.O.),
Kazi Afzal (D.R.) RTO-II for Respondent
|
| Petitioners |
Messrs LATIF KNITS, KARACHI
|
| Respondents |
C.I.R.(ENF) RGII COLL S.T. & F.E., KARACHI
|
| Citations |
2013 SLD 277,
2013 TAX 29,
2013 PTD 158
|
| Other Citations |
2012 PTD 34,
2005 MLD 1329 rel.
|
| Laws Involved |
Sales Tax Act, 1990,
Qanun-e-Shahadat (10 of 1984)
|
| Sections |
10,
10(4),
8A,
117
|