Law: Sales Tax Act, 1990

Section: 57,47,3

Summary

The Supreme Court dismissed the petitioner's appeal, upholding the Lahore High Court's decision that the Appellate Tribunal Inland Revenue exceeded its jurisdiction by using rectification powers under Section 57 of the Sales Tax Act, 1990 to revisit a concluded matter. The case centered on whether the Tribunal could modify its earlier order after the High Court had partially allowed a reference filed by the tax department.

SALES TAX ACT, 1990 (VII OF 1990)

Section: 57 - Rectification of mistake - Show cause notice - Passing of order-in-original - Appeal filed before the CIR(A), dismissed - Appeal filed before Appellate Tribunal, was accepted and FIR registered against petitioner quashed - Reference filed by Respondent against Appellate Tribunal’s order was decided by High Court in Respondent’s favour - CPLA against aforesaid order passed in reference jurisdiction withdrawn, whereas petitioner separately filed application before Appellate Tribunal for fixation/rectification of previous order to the extent of question of law and fact regarding respondent’s failure in determining liability under normal tax regime, which claimed to have been overlooked by Tribunal in the first round of litigation - Tribunal modified its order in favour of the petitioner and against the respondent that preferred a reference in High Court on the ground that rectification jurisdiction could not have been exercised by the Tribunal - Sales Tax reference accepted by Division Bench of Lahore High Court - Filing of CPLA by petitioner in Supreme Court - Validity - 

FACTS

The matter triggered when show cause notice was issued by the Inland Revenue officer, out of which Order-in-Original was passed against the petitioner.