Law: Sales Tax Act, 1990

Section: 8(1)(d), 8(1)(ca), 2(37), 34(1)(c), 33(13)

- Appellate Tribunal of Inland Revenue, Lahore, has directed the Chairman of the FBR to take strict action against the tax officials, who failed to produce records before the court in a case of tax fraud despite specific directions of the court FBR should initiate the inquiry, fix responsibility, and take strict action against the responsible persons under the law. ……from the non-corporative attitude of the concerned tax officials prima facia shows that there is something dubious and ulterior motive involved for which the record has not been produced before the court. Such conduct, if left unchecked, strikes at the very sanctity of statutory limitations, undermines transparency in tax administration, and erodes confidence in the integrity of the official record. From all the facts recorded above, it is very much evident that departmental officials have playing ping pong with this forum but neither tendered a personal appearance nor faithfully discharged their obligation to produce the relevant record. There is a common practice among the departmental representatives to say that the record is not available. Therefore, a thorough probe is needed so that in the future such a kind of controversy does not arise, the tribunal added, Case Law Analysis The Tribunal relied heavily on established judicial precedents to determine whether the department could bypass the five-year limitation period by labeling the case as "tax fraud." Mandatory Nature of Limitation: The Tribunal cited the landmark judgment of the Supreme Court of Pakistan in Collector of Sales Tax, Gujranwala v. M/S Super Asia Muhammad Din & Sons (2017 SCMR 1427). In this case, the apex court held that the limitation periods provided in Section 11 (and the erstwhile Section 36) of the Sales Tax Act are mandatory. The court observed that the negative character of the language employed in the statute restricts the powers of the officer and the Collector from granting unlimited extensions. Quorum Non Judice: Following the dictum in Collector of Sales Tax, Gujranwala v. M/S Super Asia Muhammad Din & Sons (2017 SCMR 1427), the Tribunal concluded that any…

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