Law: Sales Tax Act, 1990

Section: 2(37),37/1,37A,37B,37C,38

Law: Constitution of Pakistan, 1973

Section: 199

Sales Tax Act, 1990 (VII of 1990) - Sections 2(37), 37/1, 37B, 37C - Constitution of Pakistan, 1973 - Art, 199 - Constitutional Petition - Power to arrest and prosecute - Determination of tax liability - Show Cause Notice - Lodging of FIR by Deptt. Without completing audit and fixing tax liability - Validity -Whether admittedly neither any Show Cause Notice has been issued to petitioner nor any adjudicating proceedings carried out against petitioner and only on basis of "that petition en prima facie, involved in tax fraud and massive tax evasion as defined under section 2(37) of Sales Tax Act, 1990 FIR was registered - Held yes. Whether respondents are directed to complete investigative audit as initiated u/s 38 of Sales Tax Act, 1990 vide Notice 18-10-2011 to adjudge liability of petitioner company and only after adjudging liability of petitioner, coercive measured can be adopted against him - Held yes. Perusal of the report and para-wise comments filed by the respondents/department reveal that respondent/department itself initiated investigative audit of the petitioner, however before completion of the said investigative audit under section 38 of the Sales Tax Act, 1990 separate proceedings under sections 37A, 37B, 37C of the Sales Tax Act, 1990 were also initiated and on the basis of said proceedings under section 37 of the Sales Tax Act, 1990 an authorization was obtained on 02.05.2013 from the competent authority for registration of FIR. Nowhere in the parawise comments or before this Court, has learned counsel for the respondents/department submitted anything regarding determination of the petitioner's sales tax liability. Even in the FIR it is alleged that petitioner has made taxable supplies without registering itself with the Sales Tax Department and liability is mentioned as Rs.31.657 million on "prima facie" basis. Admittedly neither any show cause notice has been issued to the petitioner nor any adjudicating proceedings carried out against the petitioner and only on the basis of "that the petitioner, prima facie, involved in tax fraud and massive tax evasion as defined under section 2(37) of the Sales Tax Act, 1990" FIR was registered. In view of…

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