Law: Sales Tax Act, 1990

Section: 36,36(3),45B(2)

Sales Tax Act (VII of 1990)---Ss. 36 (3) & 45B (2)---Recovery of tax not levied or short-levied or erroneously refunded---Limitation---Taxpayer contended that Order-in-Original should have been passed within 90 days of the issuance of show-cause notice or within such extended period as the Commissioner may, for the reasons to be recorded in writing, provided that such extended period should in no case exceed 90 days; admittedly the show-cause notice was issued on 9-10-2004 and the Order-in-Original was passed on 15-11-2006; which was clearly time barred having not been passed within the prescribed time limit by law---Validity---Limitation provided by law under S.36(3) of the Sales Tax Act, 1990 was mandatory and the order under said section should have been passed within such time period---Since the Order-in-Original was passed beyond the limitation provided in law, it was not sustainable and had to be struck down---Show-cause notice as well as orders were set aside by the Appellate Tribunal; and orders of the authorities below were vacated and the demand created was deleted. 2006 PTD 271 (SC); 2008 PTD 60 (H.C.) and 2009 PTD 2004 rel. 2009 PTD 762; 2008 PTD 2025; 2008 PTD 578 (H.C.); 2010 PTD (Trib.) 81; 2010 PTD (Trib.) 251 and 2009 PTD (Trib.) 1263 ref. ORDER This appeal preferred by the registered person (hereinafter called the appellants) has assailed the Order-in-Appeal No.Ex.29/2007 passed by the Collector of Sales Tax (Appeals) Lahore recorded on 31-10-2007 whereby he has upheld the Order-in-Original No.23 of 2006 dated 15-11-2006. Facts of the case in brief are that on having information that certain paper board manufacturing units were evading the central excise duty and sales tax, a drive against these units was launched. On investigation it was revealed that the products of these units were being sold at a higher rate than declared in the excise record. In order to ascertain the factual position wholesale market of paper was visited and documentary evidence pertaining to selling of writing paper produced and declared by the appellants were obtained. On the basis of these evidence, it was observed that the appellants are declaring less rates as…

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