| Case ID |
3a5d62fd-20cc-44e0-b5bb-2d1ae32cbb43 |
| Body |
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| Case Number |
S.T.A. No.833/LB of 2013 |
| Decision Date |
Nov 21, 2013 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal Inland Revenue accepted the appeal of Messrs Fazal Paper Mills (PVT.) LTD. and declared the assessment order issued by the DCIR, Audit Unit-01, RTO, Lahore, as void due to its issuance beyond the statutory limitation period. The Tribunal emphasized that the time limits prescribed in the Sales Tax Act, specifically under section 36(3), are mandatory, and failure to comply with these limits results in a vested right for the taxpayer to escape assessment. The decision was based on the principles established in previous case law, which assert that public authorities must adhere to statutory deadlines to ensure fairness and justice in tax assessments. |
| Summary |
In the case of Messrs Fazal Paper Mills (PVT.) LTD. vs. CIR, RTO, Lahore, the Appellate Tribunal Inland Revenue ruled on the importance of adhering to statutory time limits for tax assessments as outlined in the Sales Tax Act, 1990. The Tribunal found that the assessment order dated April 9, 2013, was issued after the maximum allowable period of 120 days following the issuance of a show-cause notice on August 15, 2012. The Tribunal highlighted that the delay in issuing the assessment order violated the taxpayer's rights and undermined the legal framework established for tax assessments. The decision reinforced the concept that when a statutory time limit expires, the taxpayer has a vested right to be free from additional tax liabilities. This ruling holds significance for taxpayers and tax authorities alike, as it clarifies that compliance with legal deadlines is not only procedural but essential for the protection of taxpayer rights. The case underscores the necessity for tax officials to act within the confines of the law to maintain the integrity of the tax system, ensuring that citizens are not subjected to arbitrary or delayed tax assessments. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Messrs FAZAL PAPER MILLS (PVT.) LTD.,
CIR, RTO, LAHORE
|
| Judges |
JAWAID MASOOD TAHIR BHATTI,
SOHAIL AFZAL
|
| Lawyers |
Not available
|
| Petitioners |
Messrs FAZAL PAPER MILLS (PVT.) LTD., OKARA
|
| Respondents |
CIR, RTO, LAHORE
|
| Citations |
2014 SLD 1473,
2014 PTD 448,
(2014) 109 TAX 340
|
| Other Citations |
2008 PTD 60,
PLD 1963 SC 322,
2001 SCMR 838,
2008 PTD 578,
2009 PTD (Trib) 1263,
2011 PTD (Trib) 408,
2008 PTD 2025
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
11(5),
36(3)
|