Collector Of Customs, Sales Tax (West), Karachi vs J.M_S. K & A Industries, Karachi
This petition arises from an order passed by the High Court of Sindh, Karachi, which allowed the respondent's appeal and struck down the demand for Additional Tax on the ground that the show-cause notice dated 12.8.1999 was issued beyond the prescribed period of limitation under sub-section (2) of section 36 of the Sales Tax Act. The core legal question before the Supreme Court was whether the show-cause notice issued in respect of the tax year 1994-95 on 12th August 1999 was within the statutory limitation period of three years. The Supreme Court held that the petitioner's counsel failed to demonstrate that the notice was within time, confirming that the show-cause notice was indeed served beyond the prescribed limitation period of three years. The court established that a show-cause notice issued beyond the statutory limitation period is void and cannot sustain a demand for tax or additional tax, thereby upholding the High Court's non-suiting of the petitioner and dismissing the petition for leave to appeal.
- Whether a show-cause notice issued beyond the statutory limitation period under section 36 of the Sales Tax Act is sustainable?
- Does a show-cause notice for the tax year 1994-95 served on 12th August 1999 fall within the prescribed three-year limitation period?
- Section 36(2), Sales Tax Act 1990
IFTIKHAR MUHAMMAD CHAUDHRY, C.J.-(1) This petition calls in question the following order passed by the High Court of Sind, Karachi:- "By the impugned order the appeal filed by the respondent was allowed and the demand of Additional Tax was struck down for the reason that the show-cause notice, dated 12.8.1999 was beyond the prescribed limitation in terms of sub-section (2) of section 36 of the Sales Tax Act. Mr. Abdul Sattar Silat was not able to dislodge the finding which is based on facts. Consequently, the appeal has no merits and the same is dismissed, with no order as to costs."
2. Learned counsel when confronted with the provisions of sub-section (2) of section 36 of the Sales Tax Act, and was called upon to explain as to whether in respect of the year 1994-95, show cause notice, dated 12th August, 1999, was within the prescribed limitation i.e. Three years. He could not answer satisfactorily. Thus it is held that show- cause notice was served beyond the period of limitation as prescribed in sub-section (2) of section 36 of the Sales Tax Act and as Such learned High Court had rightly non-suited the petitioner.
Petition is dismissed and leave declined. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.