Law: Sales Tax Act, 1990

Section: 37

Law: Specific Relief Act, 1877

Section: 58e

Law: Pakistan Penal Code, 1860

Section: 193,228

SUMMARY; The plaintiff challenged a summons issued under Section 37 of the Sales Tax Act, 1990, requiring him to appear and provide documents in an inquiry regarding fake/flying sales tax invoices. However, the plaintiff did not dispute the legality or jurisdiction of the summons or the inquiry itself; instead, he feared that the inquiry might lead to suspension of his sales tax registration. The Court held that such apprehension of possible future action does not constitute a valid cause of action, as previously established in case law. It also noted that the inquiry is treated as a judicial proceeding and could lead to criminal proceedings, which a civil court cannot stay under Section 56(e) of the Specific Relief Act. During proceedings, the department’s counsel assured that any action would be taken strictly in accordance with the law. Based on this assurance, the plaintiff agreed, and the Court disposed of the suit with the direction that any departmental action must comply with the law. **********   Adnan Iqbal Chaudhry J. -  The Plaintiff has challenged a summons issued to him by the Assistant Director, Directorate of Intelligence & Investigation–Inland Revenue under section 37 of the Sales Tax Act, 1990, calling upon him to appear for a hearing along with information/documents in relation to an on-going inquiry into the use of fake/flying sales tax invoices. The case of the Plaintiff is that while he has and will provide the said officer all documents so required, his apprehension is that the summons is ground-work being laid by said officer to suspend the sales tax registration of the Plaintiff.  It is not the Plaintiffs case that the summons is without jurisdiction or that the underlying inquiry is without jurisdiction. Rather the Plaintiff apprehends consequences on culmination of an inquiry which consequences may or may…