Law: Sales Tax Act, 1990

Section: 11(2)

Law: Sales Tax Rules, 2006

Section: 11(2)

SALES TAX ACT, 1990 (VII OF 1990)---Section: 11(2) - Sales Tax Rules, 2001, Rule: 12 - Assessment of tax and recovery of tax not levied or short levied or erroneously refunded - Suspension of Sales Tax registration without issuance of Show Cause Notice - Waiver of notice - Remand of case - Challenge to-FACTSThrough this petition, the petitioner has impugned suspension of its Sales Tax Registration (brought to its knowledge via newspapers) without issuance of show cause notice and by way of order dated 27.04.2018 the said order of suspension dated 26.4.2018, which was yet to be delivered to the petitioner was suspended in presence of Mr. Abdul Hafeez, Additional Commissioner Inland Revenue Zone-V, who had come to the Court and waived the notice. The said suspension was made purportedly pursuant to a show cause notice dated 23.4.2018 issued in terms of section 11(2) of the Act for recovery of sales tax and subsequently the said show cause notice dated 23.4.2018 was adjudicated against the petitioner and in Appeal the Commissioner (Appeals) has been pleased to set aside it and the matter was remanded vide order dated 04.10.2019.ARGUMENTSToday learned counsel for the petitioner submits that he would be satisfied if the order of suspension is set-aside as apparently the same was issued without a show cause notice purportedly in terms of Rule 12 of the Sales Tax Rules 2001, which now stands declared as ultra vires by this Court.DECISIONSuspension of registration without issuance of any Show Cause Notice -Already stands declared ultra-vires - Admittedly, the suspension itself was without issuance of any show cause notice, whereas, the Rule purportedly on the basis of which the power of suspension was exercised without issuance of show cause notice, already stands declared ultra-vires by a Division Bench judgment of this Court dated 12.9.2019 in the case tilted as Saleem Ahmed v. Federation of Pakistan & others {C.P. No. D-8101 of 2017 & others}. Accordingly, in the facts and circumstances of this case, the order of suspension dated 26.04.2018 is hereby set aside. Consequently, the petition is allowed in the above terms.Case Referred to:Saleem Ahmed v.…