Law: Sales Tax Act, 1990

Section: 36,36(3),74

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 19

(a) Limitation- -Object and rationale for law of limitation-Law of limitation was founded on public policy and State interest and was vital for an orderly and organized society-Statutes of limitation were jurisprudential necessities because they achieved peace and good administration. Atta Muhammad v. Maoula Bakhsh and others 2007 SCMR 1446; Dr. Muhammad Javaid Shafi v. Syed Rashid Arshad and others PLD 2015 SC 212 and Savitri Rani Malik v. Commissioner of Income Tax 186 ITR 701 rel. (b) Sales Tax Act (VII of 1990)- -Ss. 74, 36(3) & 47-Recovery of sales tax-Adjudication- Limitation prescribed under S. 36(3) of the Sales Tax Act, 1990- Condonation of time limit and exercise of power under S. 74 of the Sales Tax Act, 1990-Scope-Question before the High Court was u whether limitation provided under S. 36(3) of the Sales Tax Act, 1990 was mandatory or directory and whether the same could be condoned by virtue of S. 74 of the Sales Tax Act, 1990"-Held, S. 74 of the Sales Tax Act, 1990 had a general application and would have an overriding effect over the first proviso to S. 36(3) of the Sales Tax Act, 1990 and would be taken as an exception thereto-Department was, therefore, competent to extend time limit for decision of a case by Adjudicating Officer even though original limitation under S. 36(3) of the Sales Tax Act, 1990 had expired-Department under S. 74 of the Sales Tax Act, 1990 however, did not have unfettered powers to extend time and such power should be exercised after application of mind and within reasonable time-Extension of time should be for a reasonable period and could not be for an indefinite period and for purposes of S.36(3) of the Sales Tax Act, 1990 after expiry of the two time lines envisaged in the proviso thereof, Department would have six months within which it may grant an extension, which extension should not exceed six months-Such reasonable time if lapsed, then transaction would be treated as past and closed and a vested right would accrue in favor of the registered person / taxpayer-Reference was answered, accordingly. Messrs Abbasi Enterprises and another v. Collector of Sales Tax, Peshawar and 3 others 2008 PTD 2025 ref. Messrs…

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