Law: Sales Tax Act, 1990

Section: 66,11,45B

(a) Sales Tax Act (VII of 1990)--- ----Ss.66, 11 & 45B---Refund to be claimed within one year---Department contended that order of First Appellate Authority was illegal and without lawful authority as the refund claimed filed by the taxpayer was barred by time; that order under S.66 of the Sales Tax Act, 1990 was an independent order against which appeal lay as provided under S.45B of the Sales Tax Act, 1990; and that First Appellate Authority was not justified to consider the Show-Cause Notice as barred by time under S.11 of the Sales Tax Act, 1990 because S.11 of the Sales Tax Act, 1990 only apply in those cases where tax demand had been created against the taxpayer whereas the present case pertained to the refund which was only dealt under S.66 of the Sales Tax Act, 1990---Taxpayer contended that Show-Cause Notice was hit by limitation prescribed under S.11 of the Sales Tax Act, 1990 which required an officer of Inland Revenue to issue a Show-Cause Notice in various situations inter alia including where a person claims input tax credit or refund which was not admissible under the Sales Tax Act, 1990; that Show-Cause Notice for rejection of refund was required to be issued as per provisions contained in subsections (2) & (5) of S.11 of the Sales Tax Act, 1990 and within a period of five years; that neither he had charged nor had collected further tax from its buyer during the period from July 1998 onwards; and that there was no question that incidence of tax had been passed on to the buyers---Validity---First Appellate Authority had correctly found that Show Cause Notice for rejection of refund shall be issued under subsections (2) & (5) of S.11 of the Sales Tax Act, 1990 within a period of five years and no such provision were available under S.66 of the Sales Tax Act, 1990 for issuance of Show Cause Notice---Show Cause Notice issued after more than five years was barred by time---No interference was warranted in the order of First Appellate Authority by the Appellate Tribunal as First Appellate Authority had discussed all the issues in detail. PLD 1998 SC 64; 1992 SCMR 1898; 2005 PTD (Trib.) 1571 2003 PTD 2867 and 2002 PTD 3043 ref. 2011 SCMR…

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