| Citation(s) |
|---|
| 2025 SLG 1364 2025 SLD 1364 = 2025 LHC 2906 |
Lahore High Court
Case No. STR No.23259 of 2017
PRESENT; (SULTAN TANVIR AHMAD) J (HASSAN NAWAZ MAKHDOOM) J
Date of Hearing: 28.04.2025 Applicant by: Syed Zulfiqar Ali, Advocate.
Respondent No.2 by: Mr. Sohaib Aziz, Advocate/Legal Advisor for FBR.
Case No. STR No.23259 of 2017
PRESENT; (SULTAN TANVIR AHMAD) J (HASSAN NAWAZ MAKHDOOM) J
Date of Hearing: 28.04.2025 Applicant by: Syed Zulfiqar Ali, Advocate.
Respondent No.2 by: Mr. Sohaib Aziz, Advocate/Legal Advisor for FBR.
M/s. Auto Craft
VERSUS
Appellate Tribunal Inland Revenue, Lahore and another
Law: Sales Tax Act, 1990
Section: 11(5), 57
Summary ;
Core Legal Issues
Whether the Appellate Tribunal Inland Revenue (ATIR) was justified in rectifying its own final order under Section 57 of the Sales Tax Act, 1990, effectively vacating its earlier decision.
Relevant Law Sections
| Section | Law/Provision | Core Content |
|---|---|---|
| Section 11(5) | Sales Tax Act, 1990 | Sets limitation for assessment orders: a show cause notice (SCN) must be issued within 5 years from the end of the relevant financial year. The assessment order must be passed within 120 days of the SCN, extendable by up to 90 days for recorded reasons. Certain periods (e.g., stay orders, ADR) are excluded from this limitation. |
| Section 57 | Sales Tax Act, 1990 | Permits rectification of "mistakes apparent from the record" by the Tribunal or tax authorities, either on their own motion or upon being pointed out. Such rectification must not adversely affect the taxpayer without a hearing, and must be done within five years of the original order. |
Key Facts
The Tribunal initially set aside the assessment order against the applicant (Auto Craft) on the ground that it was time-barred, believing the SCN was issued on 18.08.2014 and the order was passed after 471 days, outside the limitation period under Section 11(5)1.