COLLECTOR OF SALES TAX and others vs Messrs SHAHBAZ & CO. and others
This matter concerns a petition for leave to appeal filed by the Collector of Sales Tax against a judgment of the Lahore High Court. The petitioner sought condonation of delay in filing the petition, arguing that leave to appeal had already been granted in a connected case involving identical legal questions. The Supreme Court of Pakistan noted that the issue of condoning delay based on the grant of leave in a connected case is legally debatable, citing conflicting precedents. However, without deciding the limitation issue at this preliminary stage, the Court granted leave to appeal to examine substantive questions regarding the refund of Sales Tax. Specifically, the Court will consider whether the respondent had passed the tax burden to recipients of goods, whether the payment of Sales Tax was required to be made in the same manner as supplies to registered persons, and whether the respondent was entitled to a refund if the tax burden was passed on to recipients. The appeals were ordered to be heard alongside the connected case, with the limitation issue reserved for final hearing.
- Can delay in filing a petition for leave to appeal be condoned solely on the ground that leave has been granted in a connected case involving identical questions?
- Is a taxpayer entitled to a refund of Sales Tax if the tax burden has been passed on to the recipients of the goods?
- Does the payment of Sales Tax on supplies to unregistered persons follow the same procedural requirements as supplies to registered persons?
ORDER
'IFTIKHAR MUHAMMAD CHAUDHRY, J.--- The above listed petitions have been filed against the judgment, dated 27-10-2003 passed by Lahore High Court, Lahore.
2. The petitions are barred by time. An application has been moved seeking condonation of the delay. Learned counsel for the petitioner has pointed out that in a connected case i,e, Civil Petition No,1068-L of 2002, wherein identical question was involved leave to appeal has already been granted by this Court on 12th April, 2002 therefore, he argued that following the dictum laid down in the case Noon Sugar Mills Ltd. v. Market Committee PLD 1989 SC 449, delay may be condoned and treating the petition within time, leave to appeal may be granted in this case as well.
' It may be noted that the question of condoning of delay on the ground so urged by the learned counsel is debatable in view of the latest judgment of this Court in the case of Muhammad Hussain and others v. Muhammad and others 2000 SCM R 367 and Ali Muhammad through L.Rs, v. Chief Settlement Commissioner 2001 SCM R 1822, however leaving the question of limitation for consideration at a later stage, in view of the earlier judgment of this Court in Civil Petition No,1068-L of 2002 wherein leave to appeal has been granted subject to limitation, leave to appeal in this case is also granted to examine the following questions:--- "(a) that the respondent had passed on the same to the said persons who were the recipients of the goods;
(b) that the payment of the Sales Tax under the said section was to be made in the same manner as was required to be paid in case of supply to a registered person as such no refund could be claimed;
(c) and that the respondent in fact passed on the said tax to the recipient and did not pay the same from its own packet."
' The appeals arising out of instant petitions are directed to be fixed alongwith the appeal arising out of the Civil Petition No,1068-L of 2002. Notice of the application for condonation of delay be also issued to the respondents and on filing their reply the question of limitation shall be taken up at the time of final hearing of the appeals.