Law: Customs Act, 1969

Section: 31A,32,32(2),179,179(1)

Law: Sales Tax Act, 1990

Section: 11,11(1),33,34

Law: Income Tax Ordinance, 2001

Section: 148,162

THIS JUDGMENT DELIVERED BY: SHAHID KARIM, JUSTICE:---.--- This petition and connected petitions W.P No. 95144 of 2017, W.P No. 218646 of 2018, W.P No. 136806 of 2018, W.P No. 136736 of 2018, W.P No. 205774 of 2018 and W.P No. 227754 of 2018 raise a common question of law and are being decided by a common judgment. The Issue: 2. The question relates to the construction of the word "taxes" mentioned in section 32 of the Customs Act, 1969 (Act, 1969). That word was added in the entire section 32 wherever the context required and has been inserted by Finance Act, 2014. By way of illustration, sub-section (2) of section 32 is reproduced below and around which the entire controversy revolves: "32(2) Where, by reason of any such document or statement as aforesaid or by reason of some collusion, any duty, taxes or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within 73[fve] years of the relevant date, requiring him to show cause why he should not pay the amount specified in the notice." 3. It can be seen from a reading of section 32(2) reproduced above that a person liable to pay any amount of duty or taxes or other charges which has not been levied or has been short levied or has been erroneously refunded, shall be served with a show cause notice requiring him to show cause why he should not pay the amount specified in the notice. The petitioners have been served with a show cause notice (the dates are different in all cases but that has no bearing on the outcome of these petitions) whereby proceedings have been set in motion under Section 32 of the Act, 1969 requiring the petitioners to show cause as to why certain amounts of sales tax and income tax should not be recovered from them. The challenge of the petitioners is premised on the proposition that an officer of Customs or more precisely the Collector, Collectorate of Customs (Adjudication) does not have the jurisdiction to enter upon and decide the liability of the petitioners in respect of payment of any amount of sales tax or income tax as these amounts can only be recovered by initiating…

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