Pakistan Case Law
2006 PTD 332

Messrs WAK LIMITED through Chief Executive vs FEDERATION OF PAKISTAN

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Citation2006 PTD 332
CourtLahore High Court
Case No.Writ Petition No,17797 of 2005
Date2005-10-31
Judge(s)Nasim Sikandar
ResultOrder accordingly
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This constitutional petition was filed before the Lahore High Court by Messrs WAK Limited against the Federation of Pakistan, grievance being the non-hearing or non-issuance of judgment in an appeal pending before the Customs, Central Excise and Sales Tax Appellate Tribunal, Lahore, while the respondent-revenue sought to enforce recovery of disputed tax. The core legal question addressed was whether an assessee is entitled to interim relief restraining tax recovery during the pendency and reservation of judgment in an appeal before the first departmental appellate forum. The Court held that an assessee is indeed entitled to interim relief till the matter is decided by the appellate tribunal. The ratio decidendi established is that pending the decision of an appeal by the appellate tribunal where judgment has been reserved, coercive recovery measures by the revenue department cannot be enforced against the taxpayer. The Court directed the tribunal to decide the appeal within fifteen days and restrained the respondents from adopting any coercive mode of recovery in the interim.

Questions settled in this judgment
  • Is an assessee entitled to interim relief against tax recovery while an appeal is pending before the Customs, Central Excise and Sales Tax Appellate Tribunal?
  • Can the revenue department enforce coercive recovery measures when the appellate tribunal has reserved its judgment on an appeal?
  • What is the extent of protection available to a taxpayer against tax recovery during departmental appellate proceedings?
constitutional petitioninterim reliefrecovery of taxcustoms appellate tribunalpending appeal

ORDER

NASIM SIKANDAR, J.---The only grievance expressed through this Constitutional petition appears to be the non-hearing of the appeal pending before the respondent No,3 Customs, Central Excise and Sales Tax Appellate Tribunal, Lahore. It is claimed that the appeal filed by the petitioner has already been heard by the learned Tribunal. However, their judgment is awaited. It is further stated that despite the fact that learned Tribunal has reserved its judgment the respondent-revenue is bent upon enforcing the recovery which is a subject-matter of appeal before the Tribunal.

2. Learned counsel for the petitioner submits and I will agree that the Tribunal being the first extra Departmental Appellate forum, an assessee is entitled to interim relief till the matter is decided by him. Accordingly the prayer for interim relief till the decision of the appeal by A the Tribunal is allowed. He will decide the appeal within 15 days from the date this order is conveyed to them.

3. Till then no coercive mode of recovery shall be enforced against the petitioner. In case any order enforcing the recovery has already been issued it shall forthwith cease to have effect for the aforesaid period.

4. Disposed of. 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.

Cited by 4 cases

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