Deputy Collector, Sales Tax, Lahore vs M/S. Flying Board And Paper
This matter concerns a petition for leave to appeal against a judgment of the Lahore High Court, which set aside an order passed by the Member, Central Board of Revenue, Islamabad, under Section 45-A of the Sales Tax Act, 1990. The dispute arose after the Directorate of Intelligence and Investigation reported alleged sales tax malpractices by the respondent. While the Additional Collector initially found the respondent liable, the Collector (Appeals) subsequently set aside that order. The Director General then unsuccessfully approached the Customs, Excise and Sales Tax Appellate Tribunal. Thereafter, the Member, Central Board of Revenue, exercised powers under Section 45-A of the Sales Tax Act, 1990, to set aside the Collector (Appeals)'s order. The High Court overturned this decision. The Supreme Court granted leave to appeal to authoritatively determine whether the Central Board of Revenue possesses the statutory authority under Section 45-A of the Sales Tax Act, 1990, to interfere with or revise the orders passed by the Collector (Appeals), given the administrative hierarchy and appointment provisions within the Act.
- Does the Central Board of Revenue have the authority under Section 45-A of the Sales Tax Act 1990 to interfere with the orders passed by the Collector (Appeals)?
- Is the Collector (Appeals) considered an officer of Sales Tax subject to the revisional jurisdiction of the Central Board of Revenue under the Sales Tax Act 1990?
- Section 3, Sales Tax Act 1990
- Section 6, Sales Tax Act 1990
- Section 7, Sales Tax Act 1990
- Section 26, Sales Tax Act 1990
- Section 30, Sales Tax Act 1990
- Section 40, Sales Tax Act 1990
- Section 45-A, Sales Tax Act 1990
- Section 2(18), Sales Tax Act 1990
ORDER TANV1R AHMED KHAN, J.-- Leave to appeal is sought against the judgment dated 28.9.2001 whereby a learned Single Judge of the Lahore High Court, Lahore, accepted the writ petitions filed by respondent No. 1 and set aside the order of the Member, Central Board of Revenue, Islamabad, passed under Section 45- A of the Sales Tax Act, 199Q (hereinafter referred to as the Act).
2. They facts briefly narrated for the disposal of these petitions are that the Directorate of Intelligence and Investigation (Customs and Excise), Regional Office, Lahore, reported against the malpractices committed by respondent No. 1 in the charge of sales tax resulting into loss of huge amount to the national exchequer. The Additional Collector took-up the matter and found the respondents guilty under Sections 3, 6, 7 and 26 of the Act and ordered them to pay the amounts due alongwith penalties running into millions of rupees. The respondent filed an appeal before the Collector (Appeals), who accepted the same through an order dated 26.8.1997. The afore- mentioned order of the Collector (Appeals) was assailed by the Director General Intelligence and Investigation (Customs and Excise), Lahore, before the Customs, Excise and Sales Tax Appellate Tribunal, Lahore, which was dismissed being not maintainable and held the appeal something like coram non judice. The matter was taken-up by the Member (Sales Tax), Central Board of Revenue, Islamabad, in the exercise of powers under Section 45- A of the Act and after hearing the parties through his order dated 7.7.2000 set aside the earlier order of the Collector (Appeals) passed on 26.8.1997. Feeling aggrieved by the above order, respondent No. 1 filed aforesaid writ petitions before the Lahore High^Court, Lahore, which have been accepted by a learned Single Judge through the impugned judgment. Hence, these petitions for leave to appeal.
3. It is inter alia argued by the learned counsel for the petitioner that the Collector (Appeals) is an officer of the Sales Tax who is appointed under Section 30 of the Act read with Section 2(18) thereof.
He, being an officer of Sales Tax, his orders, according to the learned counsel, are amenable to the jurisdiction of the Central Board of Revenue under Section 45-A of the Act. To reinforce his submissions he has placed reliance upon Sections 2(18), 30, 40 and 45-A of the Act.
4. The contentions raised above, being of first impression, need consideration. Leave to appeal is, accordingly, granted in all the petitions to give an authoritative judgment on, the point', whether in the circumstances of the case in hand the Central Board of Revenue is clothed with any authority/power under ' Section 45-A of the Act to interfere with the orders of the Collector (Appeals).