Law: Sales Tax Act, 1990

Section: 11(4)

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 9

(a) Sales Tax Act (VII of 1990)--- ----S. 11(4), proviso---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.9---Assessment of tax---Limitation---Extension of time limitation after expiry of 90 days --Complainant contended that show-cause notice was issued on 9-10-2007 and since no order had been passed within 90 days (i.e. by 9-1-2008) in terms of proviso to subsection (4) of S.11 of the Sales Tax Act, 1990, no action could now be taken pursuant to such show-cause notice---Department pleaded that law did not place any bar on Collector's power to grant extension even after the expiry of the first 90 days and that it was not necessary that the extension in time must be granted before the expiry of the first 90 days---Since proposal for extension in time was submitted to Collector on 22-2-2008 which he allowed on 23-2-2008 the proceedings could be completed up to 23-5-2008 by which time an order will be passed after examining the facts of the case---Validity---If the arguments of the Department is accepted then it would amount to giving the Collector unlimited power to cure an inherent defect of jurisdiction---Collector's power would then appear limitless making altogether nugatory the period of 90 days for passing an order prescribed in the statute---Since show-cause notice was issued on 9-10-2007 the order should have been passed by 9-1-2008 unless the Collector had extended the period before the expiry of the original 90 days---Since the period for passing the order had already expired and no extension was allowed by the Collector before the expiry thereof, any further proceedings pursuant to such show-cause notice would be void ab initio and would tantamount to maladministration---Federal Tax Ombudsman recommended that Federal Board of Revenue should direct the concerned Collector to vacate the show-cause notice, dated 9-10-2007 within 30 days of the receipt of present order in accordance with law. (b) Sales Tax Act (VII of 1990)--- ---S. 11(4), proviso---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.9---Assessment of tax---Limitation---Nature and purpose of the provisions of S.11(4), proviso, Sales…

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