Pakistan Case Law
2006 PTD 535

SUN-RISE BOTTLING COMPANY (PVT.) LTD. through Chief Executive vs FEDERATION OF PAKISTAN and 4 others

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Citation2006 PTD 535
CourtLahore High Court
Case No.Writ Petition No,19173 of 2005
Date2005-12-20
Judge(s)Umar Ata Bandial
ResultOrder accordingly
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This constitutional petition before the Lahore High Court challenged the recovery of tax liability demanded by the respondent department after the expiry of a six-month interim injunction granted by the Appellate Tribunal under Section 46(4) of the Sales Tax Act, 1990. The central legal question was whether tax recovery can be pursued when an appeal before an independent tribunal remains pending despite the expiration of an interim stay order by operation of law. The Lahore High Court held that access to justice is a fundamental right requiring the determination of disputes by an independent forum outside the departmental hierarchy. The Court held that coercive recovery measures cannot be adopted while an assessee's first appeal before the independent Appellate Tribunal is pending final adjudication. The respondents were directed not to resort to coercive recovery of impugned dues, and the Appellate Tribunal was directed to decide the pending appeal within three months.

Questions settled in this judgment
  • Can tax authorities resort to coercive recovery of disputed tax liability while a first appeal remains pending before an independent Appellate Tribunal?
  • Does the statutory expiration of an interim stay order empower tax authorities to collect impugned dues prior to the appeal's final determination?
Laws & provisions referred
  • Section 46(4), Sales Tax Act 1990
sales tax recoveryinterim injunction expirystatutory appealAppellate Tribunalcoercive recoveryindependent adjudicationaccess to justice

ORDER

' UMAR ATA BANDIAL, J.---The only question for determination in this case is whether the respondents are entitled to recover tax liability of the petitioner under the impugned order on account of fact that interim injunction granted by the learned Appellate Tribunal has expired with the lapse of six months pursuant to section 46(4) of the Sales Tax Act, " 1990. Learned counsel for the petitioner has referred to the judgment of this Court in the case of Z.N. Exports (Pvt.) Ltd. v.

Collector Sales Tax (2003 PTCL 1363). In that case it has been held by this Court that an assessee is entitled to adjudication in respect of his disputed tax liability by at least one independent forum outside the hierarchy of the respondent department. Admittedly in this case the impugned liability has been determined by the officers of the respondent department and remedy of the petitioner before the learned Appellate Tribunal provides the independent adjudication of his challenge to the impugned tax liability.

2. The Hon'ble Supreme Court has laid down that access to justice is a fundamental right. In the case of Meiiram Ali and others v. Federation of Pakistan and others (PLD 1998 SC 1445), it has been held that an essential feature of such right is the determination of any grievance or dispute by an independent Tribunal. Based on that principle and adopting the view of this Court expressed in the Z.N. Export case, it is directed that the respondent No,5 shall not press for recovery of the impugned dues from the petitioner who shall appear before the learned Appellate Tribunal through an appropriate application seeking final adjudication of this pending appeal. The learned Appellate Tribunal shall endeavour to decide the petitioner's appeal within a period of three months from the date of receipt of certified copy of this order. During such period coercive recovery of the impugned dues by the respondents shall not be resorted. Disposed of in the above terms.

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