Messrs ADNAN TRADING COMPANY vs APPELLATE TRIBUNAL CUSTOMS, CENTRAL EXCISE SALES TAX and others
This matter arises from a petition for leave to appeal before the Supreme Court of Pakistan, directed against an order of the High Court. The core legal questions for consideration involve whether the High Court, while exercising appellate jurisdiction under section 47 of the Sales Tax Act, is competent to exercise inherent powers under section 151 of the Code of Civil Procedure 1908, and whether the High Court was under an obligation to consider the condonation of delay in filing the appeal on equitable grounds in a matter pertaining to the levy of tax, keeping in view established judicial precedents that tax matters should ideally be decided on merits. The Supreme Court granted leave to appeal to examine these questions, recognizing the need to determine the scope of inherent powers in statutory tax appeals and the principles governing the condonation of delay in tax-related litigation. The key principle highlighted is that tax matters, in appropriate circumstances, should be addressed and decided on their merits rather than being dismissed solely on technical grounds of limitation, subject to the applicable legal framework.
- Whether the High Court while exercising appellate jurisdiction under section 47 of the Sales Tax Act would be competent to exercise the inherent powers vesting in it under section 151 of Code of Civil Procedure?
- Whether the High Court was under obligation to consider the question of condonation of delay in filing the appeal on equitable ground when the issue pertained to levy of tax?
- Section 47, Sales Tax Act
- Section 151, Code of Civil Procedure 1908
ORDER
' SAIYED SAEED ASHHAD, J.--- After hearing the arguments of Mr. Abdul Qadir Khan, Advocate Supreme Court and going through the record as well as the case-law referred to us by him, the following questions require consideration:--
(i) Whether the High Court while exercising appellate jurisdiction under section 47 of the Sales Tax Act would be competent to exercise the inherent powers vesting in it under section 151 of Code of Civil Procedure; and
(ii) Whether the High Court was under obligation to consider the question of condonation of delay in filing the appeal on equitable ground, when the issue pertained to levy of tax and this Court in the case of Messrs Bambino Ltd. v. Messrs Selmor International Ltd. And another PLD 1983 SC 155 and Hudaybia Textile Mills Ltd. And another v. Allied Bank of Pakistan Ltd. And others PLD 1987 SC 512 pronounced that matters pertaining to levy or otherwise of taxes should in all probability be decided on merits.
2. Leave to appeal is granted inter alia to consider the above questions.