PUNJAB ALUMINUM EXTRUSION vs COMMISSIONER INLAND REVENUE, RTO, FAISALABAD Ss

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PUNJAB ALUMINUM EXTRUSION VS COMMISSIONER INLAND REVENUE, RTO, FAISALABAD Ss. 3, 6 & 14---Sales Tax Act (VII of 1990), S.11---Declaration of undisclosed assets, sales and expenditures---Tax periods, non-determination of---Effect---Proof of payment of tax not given by the registered person---Effect---Company got itself registered in sales tax on 24-12-2-18 and agreed to deposit certain amount voluntarily---Later registered person filed declaration of amnesty on 03-07-2019 under Assets Declaration Ordinance, 2019 ('the Ordinance 2019')---Assessing Officer taxed the entire undeclared sales shown in amnesty on the basis that since there was no proof of payment of tax paid by the taxpayer under the claimed amnesty, which order was confirmed by the Commissioner (Appeals)---Company (registered person) assailed both orders before the Appellate Tribunal Inland Revenue---Validity---Clause (b) of S. 3 of the Ordinance, 2019 stipulated that any person might declare undisclosed sales made upto 30th June 2018---Phrase " upto 30th June 2018" , being relevant, suggested that any sales prior to said date could be declared under the amnesty scheme---Sales could be of any period which were made till 30th June 2018, which could be one month old, one year old or more than five years old---Under the said provision the appellant declared sales of certain amount made without specifically bifurcating the tax-periods involved in making sales---Department took the entire un-disclosed sales from the claim and taxed it without even making any effort to determine through probe the tax period involved in said sales---Under the provisions of Sales Tax Act, 1990, there were certain time limitations provided for making any assessment which were mandatory to be followed---Recovery of tax was only possible after the tax had been duly assessed and the amount of 'tax due' was determined under S. 11 of the Sales Tax Act, 1990---No determination of the tax periods involved in sales, in the present case, was gathered by the Department---Benefits available to any person under the law could not be overridden by use of unbridled powers, and when the law specifically provided that proceedings could only be initiated within five years from the relevant date of default then without even determining the relevant date of default, any issuance of notice was vague, void and illegal---Appellate Tribunal Inland Revenue declared the impugned orders passed by both the Authorities below to the extent of alleged whole undeclared supplies as unlawful and void, therefore, same were set-aside, however, tax charged on sales of amount for period of July 2018 to November 2018 was confirmed---Appeal filed by the company (registered person) was partly allowed accordingly.

PUNJAB ALUMINUM EXTRUSION vs COMMISSIONER INLAND REVENUE, RTO, FAISALABAD Ss — 2024 PTD 1037 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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