The State Through Collector Of Sales Tax vs Muhammad Ashfaq Ahmed
This petition for leave to appeal under Article 185(3) of the Constitution of Islamic Republic of Pakistan, 1973 was filed by the State against the judgment of the High Court of Sindh, Karachi. The core legal question involved the determination of sales tax liability, quantum of evasion, and the consequential initiation of prosecution under the Sales Tax Act. The Supreme Court disposed of the petition with the consent of the parties, directing the concerned Collector to determine the sales tax liability within a statutory period of four weeks, following which the petitioner would be at liberty to initiate prosecution in accordance with the already lodged First Information Report and the law. The Court laid down the principle that the determination of tax liability and obtaining of proper sanction must precede the formal initiation of prosecution as mandated by the relevant statutory provisions, and fixed a strict time frame to expedite the proceedings without unnecessary adjournments.
- Whether the Supreme Court can direct the Collector to determine tax liability within a specified time frame?
- Can prosecution for sales tax evasion be initiated after obtaining proper sanction and determination of liability?
- Whether leave to appeal under Article 185(3) can be disposed of by consent of the parties to expedite tax liability determination?
- Article 185(3), Constitution of Islamic Republic of Pakistan, 1973
- Section 40-A(3), Sales Tax Act
ORDER
MR. JUSTICE M. JAVED BUTTAR.-(1). The petitioner-State, through this petition under Article 185(3) of the Constitution of Islamic Republic of Pakistan, 1973, is seeking leave to appeal against the judgment, dated 25-2-2004 passed by a learned Judge in Chambers of the High Court of Sindh, Karachi, the last paragraph of which reads as under:- "Before parting with the case, it is observed that the prosecution will be at liberty to determine the liability in respect of the sales tax and the quantum of evasion will also be calculated and after obtaining proper sanction in writing from the Federal Government against the applicants, as envisaged in sub-section (3) of section 40-A of the Sales Tax Act and thereafter initiate action in accordance with law.
Cr. Misc. No. 461 of 2000 stands disposed of.
2. It is submitted by the learned counsel for the petitioner that this Court may give a direction for the determination of the liability, as held by the High Court within a specified time and thereafter the petitioner may be declared to be at liberty to initiate prosecution, in accordance with the F.I.R, which was lodged by the petitioner. The learned counsel representing the respondents does not oppose the above position taken by the learned counsel for the petitioner, obviously for the reason that such an order shall be in accordance with the last paragraph of the impugned judgment (reproduced above), which has not been assailed by the respondents.
3. In view of the above mentioned, this petition is disposed of with a direction to the concerned Collector- to determine the liability within the statutory period of four weeks and thereafter, the petitioner shall be at liberty to initiate prosecution against the respondents, in accordance with the F.I.R, which already stands lodged, in accordance with law. Needless to say that as time frame has been given to the Collector concerned for the determination of the liability, no party will seek unnecessary adjournments. No order as to costs.