Law: Sindh Sales Tax on Services Act, 2011

Section: 59(7), 43, 44

    JUDGMENT/ORDER/FINDINGS/RECOMMENDATIONS     This judgment from the Appellate Tribunal Sindh Revenue Board (2026 P T D (Trib.) 509), authored by Mrs. Alia Anwer, establishes critical precedents regarding appellate timelines and the jurisdictional authority over the Workers Welfare Fund (WWF). 1. The "Deeming Effect" and Statutory Deadlines The case centered on an appeal that remained pending before the Commissioner (Appeals) for 1,918 days—nearly five years beyond the legal limit of 120 days. The Law (Section 59): The Sindh Sales Tax on Services Act, 2011, requires appeals to be decided within 120 days. If not decided, the Commissioner must transfer the case to the Appellate Tribunal. The Ruling: Once the statutory period expires, the Commissioner (Appeals) becomes coram non judice (having no legal authority). Any order passed after this deadline is null and void. The Remedy: The Tribunal applied a "deeming effect," treating the appeal as if it had been automatically transferred to the Tribunal the moment the deadline passed. 2. Jurisdiction of Workers Welfare Fund (WWF) A major conflict exists between the Federal Government (FBR) and the Provinces (SRB) regarding who collects the WWF after the 18th Amendment. Council of Common Interests (CCI): The Tribunal highlighted that the CCI (a constitutional body under Article 153) decided in its 41st meeting that the WWF would remain with the Federal Government (FBR) until a mutually agreed mechanism is developed. The Decision: Since the CCI's decision is binding and has not been challenged in Parliament, the Sindh Revenue Board (SRB) was not justified in levying WWF on the appellant. Double Taxation: The appellant had already adjusted their WWF liability against federal income tax refunds. Forcing them to pay the SRB would constitute illegal double taxation. 3. Prospective vs. Retrospective Application The Department tried to use an FBR Circular from 2021 to restrict the appellant's tax adjustments from 2017. The Ruling: In financial and tax matters, new rules, notifications, and circulars apply prospectively (forward-looking) unless the law explicitly states…