Legal Case Summary

Case Details
Case ID 434f00e4-b768-458c-b095-a36e628ea623
Body View case body.
Case Number M.A. (A.G.) S.T.A, No. 16/IB of 2017 and S.T.A. No
Decision Date Sep 12, 2017
Hearing Date Jun 13, 2017
Decision The Appellate Tribunal ruled that the issuance of the show-cause notice was not maintainable due to the failure to establish specific charges against the taxpayer. The notice was declared void as it did not specify collusion or deliberate act. The tribunal emphasized that the legal requirements under Section 36(1) of the Sales Tax Act were not met, rendering the notice and subsequent orders without lawful authority. The case was also barred by time limits set forth in both the Sales Tax Act and the Federal Excise Act. Therefore, the orders of the lower authorities were vacated and declared illegal.
Summary This case involves the Appellate Tribunal Inland Revenue's decision regarding the legality of a show-cause notice issued under the Sales Tax Act, 1990 and the Federal Excise Act, 2005. The tribunal found that the notice failed to specify allegations of collusion or deliberate acts, which are necessary for the invocation of Section 36(1) of the Sales Tax Act. The tribunal highlighted the importance of adhering to legal requirements and timelines, ultimately concluding that the notice was issued beyond the permissible period, thus rendering the entire proceedings void. This case underscores the critical nature of procedural compliance in tax law and the necessity for authorities to substantiate claims of wrongdoing before proceeding with enforcement actions. It serves as a precedent for similar cases where legal technicalities may affect the outcome of tax disputes.
Court Appellate Tribunal Inland Revenue
Entities Involved Not available
Judges SHAHID MASOOD MANZAR, MIDN SAEED IQBAL
Lawyers Umar Rasheed, Shoaib Ahmed Sheikh, Muhammad Altaf Khan
Petitioners M/S INTERACTIVE COMMUNICATIONS
Respondents THE COLLECTOR (APPEALS), SALES TAX AND FEDERAL EXCISE, ISLAMABAD
Citations 2018 SLD 2517, 2018 PTD 2408
Other Citations 2006 SCMR 1519, PLD 1965 SC 690, 1997 PTD 1555, 1999 PTD (Trib.) 401, 1976 PTD 56, 1999 PTD (Trib.) 705, 2009 PTD (Trib.) 1136, 2010 PTD (Trib.) 1759, 1992 SCMR 1898, 2001 SCMR 838, 2012 PTD (Trib.) 1040, 2013 PTD (Trib.) 2130, 2007 PTD 2265, 2013 PTD (Trib.) 420, 2011 PTD (Trib.) 677, 2011 PTD (Trib.) 866, 2008 PTD 1973, 2009 PTD (Trib.) 1263, 2012 PTD (Trib.) 350, 2008 PTD 1032, 2014 PTD (Trib.) 375, 2016 PTD (Trib.) 485, 2017 PTD (Trib.) 70, 2013 PTD 1536
Laws Involved Sales Tax Act, 1990, Federal Excise Act, 2005
Sections 36(1), 36(2), 14(1)