BROTHERS ENGINEERING (PVT) LTD vs APPELLATE TRIBUNAL SALES TAX
This matter concerns a series of writ petitions filed by Brothers Engineering (Pvt) Ltd and others against the Sales Tax Appellate Tribunal, challenging the delay in the adjudication of their pending tax appeals and the subsequent coercive recovery measures initiated by the Tax Department. The core legal question addressed was whether the Tax Department could enforce coercive recovery of disputed tax dues while the petitioners' appeals remained pending before the Tribunal due to the Tribunal's own failure to adhere to statutory timelines. The Court held that the petitioners should not be penalized or harassed for delays attributable to the state's failure to adequately staff or manage the Tribunal. Consequently, the Court directed the Tribunal to dispose of the pending matters according to the provided schedule and restrained the Department from enforcing coercive measures against the petitioners during the pendency of these appeals. The key principle laid down is that citizens cannot be subjected to coercive state action for the failure of statutory forums to dispose of cases within the prescribed statutory time limits.
- Can the Tax Department enforce coercive recovery measures against a taxpayer while their appeal is pending before the Sales Tax Appellate Tribunal?
- Is a taxpayer liable for coercive recovery actions when the delay in the adjudication of their appeal is caused by the failure of the Tribunal to meet statutory timelines?
- Does the failure of a statutory forum to dispose of cases within the prescribed time limit justify the harassment of citizens by state agencies?
ORDER
1. ' This order shall dispose of the following Writ Petitions (1) 7172/2003, (2) 7173/2003, (3) 7174/2003,
(4) 7222/2003, (5) 7140/2003 and (6) 7139/2003.
2. The matter pertains to Sales Tax Appellate Tribunal, who has to adjudicate upon the appeals filed by these petitioners. Whose grievance was that their cases were being delayed and in the meanwhile they were being subjected to coercion at the end of the Department for clearing their controversial dues.
3. ' The learned Sales Tax Appellate Tribunal has now sent its report giving a schedule which reflects dates of hearing of those cases. Learned counsel appearing for Brother Engineering Ltd. In the three writ petitions has stated that one of these cases has already been heard yesterday and two cases are fixed for tomorrow, while in the other cases, dates have already been given. The Sales Tax Appellate-Tribunal should dispose of these pending matters on the dates reflected in its report.
4. 'As these matters are now to be disposed of according to the schedule provided by the Tribunal, the Department is directed not to enforce any coercive measures against the petitioners because the delay if any for hearing of their appeals is not attributable to them and rather was attributable to a forum constituted under law for hearing and disposing of the appeals within a period of 90 days but had failed to follow the periphery of statutory time. Anyway, the citizens are not to be harassed for failure on the part of the agencies that have to constitute and provide manpower for running the Tribunals enabling them to follow the statutory provision of time for disposal of cases.
5. ' With these observations, the writ petitions are disposed of.
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