| Case ID |
512cf81a-c681-4693-8710-87bead26c579 |
| Body |
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| Case Number |
Civil Petition No. 398-L of 2018 |
| Decision Date |
Nov 20, 2018 |
| Hearing Date |
Nov 20, 2018 |
| Decision |
The Supreme Court of Pakistan set aside the impugned judgment of the Lahore High Court regarding the legality of show-cause notices issued by Officers of Inland Revenue (OIRs) for non-payment or short payment of sales tax. The Court held that the OIRs had the authority to issue such notices under Section 11(3) of the Sales Tax Act, 1990, as it was within their functions and powers conferred by the Act. The High Court's ruling that the delegation of powers constituted sub-delegation without the law's sanction was incorrect. The Supreme Court clarified that both the Federal Board of Revenue (FBR) and the Commissioner Inland Revenue (CIR) had the authority to delineate the jurisdiction and functions of OIRs within the framework of the law, emphasizing that the issuance of show-cause notices was valid and upheld the procedural integrity of tax recovery efforts. |
| Summary |
This case revolves around the authority of Officers of Inland Revenue (OIRs) to issue show-cause notices concerning non-payment or short payment of sales tax under the Sales Tax Act, 1990. The Supreme Court of Pakistan addressed the legality of the notices issued by the OIRs, which were challenged in the Lahore High Court. The High Court had set aside the notices on the grounds of alleged unlawful delegation of powers from the Commissioner Inland Revenue (CIR) to subordinate officers. However, the Supreme Court found that the OIRs were operating within their lawful authority as conferred by the Act, which permits them to issue such notices in aid of tax recovery. The Court highlighted the importance of the hierarchical structure within the revenue system, affirming that both the FBR and CIR have distinct roles in delineating jurisdiction and functions. This decision reinforces the procedural framework for tax recovery and the authority of revenue officers, ensuring that the mechanisms for enforcing tax compliance remain intact. This case is significant for tax law and administrative law, as it clarifies the boundaries of authority among tax officers and the legal implications of their actions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Federal Board of Revenue,
Inland Revenue Officers
|
| Judges |
UMAR ATA BANDIAL,
MUNIB AKHTAR
|
| Lawyers |
Ibrar Ahmed,
Sarfraz Ahmed Cheema,
Ch. Muhammad Zafar Iqbal,
Mrs. Kausar Parveen,
Dr. Tariq Masood,
Dr. Ishtiaq Ahmad,
M. Ajmal Khan,
Syed Rifaqat Hussain Shah,
Imtiaz Rashid Siddiqui,
Shehryar Kasuri
|
| Petitioners |
THE COMMISSIONER INLAND REVENUE, Zone-III, RTO-II, LAHORE
|
| Respondents |
MESSRS HAMZA NASIR WIRE AND OTHERS
|
| Citations |
2020 SLD 2516 = 2020 PTD 1790
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
11(3),
30(1),
30(3),
31
|