Law: Sales Tax Act, 1990

Section: 36,36(3)

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

Sales Tax Act (VII of 1990)--S. 36(3)-Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Recovery of tax not levied or short-levied or erroneously refunded---Limitation---Complainant contended that Order-in-Original passed by the Deputy Collector (Adjudication) was without lawful jurisdiction on account of limitation provided under S.36(3) of the Sales Tax Act, 1990 as show-cause notice, dated 4-11-2003 was contested vide reply, dated 17-12-2003 but the case was decided vide Order-in-Original, dated 11-5-2005---Mandatory proviso to S.36(3) of the Sales Tax Act, 1990 provided that Order-in-Original was to . be passed within 135 days of the issuance of show cause---Limitation period expired on 20-3-2004---Adjudication authority failed to observe the time limitation so prescribed and passed the Order-in-Original on 11-6-2005 creating sales tax liability along with additional tax and penalty long after the expiry of the prescribed time limitation---Order was void because it was passed after the time-limit prescribed in S.36(3) of the Sales Tax. Act, 1990---Validity---Show-cause notice was issued on 4-11-2003 and the Order-in-Original creating liabilities was passed on 11-6-2005 (dispatched on 30-6-2005) after a period of one year, seven months and 26 days (computed from the date of dispatch) in violation of the provisions of S.36(3) of the Sales Tax Act, 1990---Order being violative of the provisions of S.36(3) of the Sales Tax Act, 1990 was clearly hit by limitation as provided in law and maladministration was established---Federal Tax Ombudsman recommended that the Revenue Division should direct the competent authority to cancel the Order-in-Original. Complaint No.805 of 2003 (Messrs Pace International Rawalpindi v. Secretary Revenue Division, Islamabad) and S.R.O. 723(I)/05 rel. Sales Tax Appeal No.2149/LB of 2002 reversed. DECISION/FINDINGS JUSTICE (RETD.) MUNIR A. SHAIKH (FEDERAL TAX OMBUDSMAN).---This complaint of `maladministration' is directed against Order-in-Original No.1002/05 passed by the Deputy Collector (Adjudication)., Multan without lawful jurisdiction on account of time limitation provided under section 36(3) of…

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