Law: Sales Tax Act, 1990

Section: 33(5), 33(1), 33(19), 45B, 11(2), 38, 72B

  Brief Facts   Background of the Appeal Appellant (Taxpayer): M/s. Siddique Iron Inds., Lahore (NTN: 0786536-8). Respondent (Department): The Commissioner Inland Revenue (CIR), CTO, Lahore. Forum: Appellate Tribunal Inland Revenue, Lahore Bench. Case No: STA No. 1495/LB/2023. Date of Order: 31.10.2025. Initial Dispute and Departmental Action An Assessment Order (No. ST-OCT-103) dated 29.10.2021 was passed by the Deputy Commissioner Inland Revenue. The order was passed under sections 11(2) & (3) of the Sales Tax Act, 1990. The demand created in the assessment order was substantial, including: Sales Tax: Rs. 102,151,118/- Default Surcharge: Rs. 5,107,556/- Penalty: Rs. 3,064,534/- (under sections 33(5), 33(13) & 33(19)). Proceedings before CIR (Appeals) The taxpayer filed an appeal against the assessment order with the Commissioner Inland Revenue (Appeals-II), Lahore [“CIR(A)”]. The appeal was filed on 14.03.2023. The CIR(A) dismissed the appeal summarily vide Order-in-Appeal No. 30-A. II dated 31.03.2023. Reason for Dismissal: The CIR(A) dismissed the appeal solely on the ground of limitation (being time-barred) without adjudicating the case on its merits.     Appellant’s Arguments before the Tribunal The appellant contended that the CIR(A) was incorrect in dismissing the appeal as time-barred. The appellant argued that the original Assessment Order dated 29.10.2021 was not served on the taxpayer until February 2023 (specific date not mentioned in the order). The appeal, filed on 14.03.2023, was therefore within the prescribed limitation period under section 45B of the Sales Tax Act, 1990, if reckoned from the actual date of service/receipt. The appellant further argued that the dismissal without considering their factual claim or supporting evidence (regarding the date of service) was an arbitrary exercise of jurisdiction and violated the principles of natural justice enshrined in Article 10-A of the Constitution of Pakistan. Tribunal’s Findings The Tribunal agreed with the…