Law: Sales Tax Act, 1990

Section: 47(5),57

Law: Federal Excise Act, 2005

Section: 70

Law: Income Tax Act, 1922

Section: 35

Law: Income Tax Ordinance, 2001

Section: 221

SALES TAX ACT, 1990 (VII OF 1990)---Section: 57 - Rectification of mistake - Registered person’s appeal was dismissed - Moving of an application u/s 57 for rectification - Appellate Tribunal allowed application, holding that earlier decision by another division bench of the Tribunal was ignored, declaring it to be a mistake of law - Reference to High Court - FACTS     Respondent registered person’s appeal was dismissed through order dated 30.11.2015. Application for rectification under section 57 of Sales Tax Act, 1990 (“Act of 1990”) was moved on various grounds. The Appellate Tribunal, by merely reproducing the grounds and arguments, allowed the application through a concise order, holding that earlier decision by another Division Bench of the Tribunal was ignored, declaring it to be a mistake of law. The appeal was allowed, without discussing the impact of the mistake upon the final order already passed. ARGUMENTS Learned counsel for the applicant-department submits that application for rectification was allowed, without identifying the mistake through a speaking order. He contends that tax can be charged from a registered person for a period, when it was registerable but was not registered. In response, learned counsel for the respondent-taxpayer submits that earlier decision was an ex-parte order wherein respondent being a retailer was taken to be a manufacturer for the purpose of taxation. As relevant law could not be applied on wrong assertion of facts, therefore, application for rectification was moved. He, however, could not show that this aspect was considered in the impugned order of rectification. DECISION (A.) Exercise of rectification jurisdiction by the Appellate Tribunal is against the spirit of law, hence improper - The Appellate Tribunal merely relied on an earlier decision by the Appellate Tribunal, without comparing facts of both the cases, therefore, this exercise of power is in sheer violation of law enshrined by Apex Court in Commissioner of Income Tax, Companies Zone-II, Karachi v. Messrs Sindh Engineering (Pvt.) Limited, Karachi (2002 SCMR 527 = 2002 PTD 419). The mistake as pleaded is not identified and its effect on the…

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