AL-MEEZAN COTTON PROCESSING, SAMMUNDRI ROAD, FAISALABAD vs The COMMISSIONER INLAND REVENUE (RTO), FAISALABAD S

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AL-MEEZAN COTTON PROCESSING, SAMMUNDRI ROAD, FAISALABAD VS The COMMISSIONER INLAND REVENUE (RTO), FAISALABAD Ss. 11, 4, 7, 8(1), 8(1)(a), 10, 23, 26 & 73---Input tax refund, rejection of---Show-Cause notice, issuance of---Limitation---Scope---Matter of refund of input tax claimed by the registered person had been deferred on various objections raised by the Computerized Risk based Evaluation of Sales Tax (CREST); thereafter the show-cause notice for rejection of input tax refund was issued after six years of relevant time /period and assessment order was passed which was maintained by the Commissioner Inland Revenue Appeals---Contention of the Appellant(registered person) was that the show-cause notice for rejection of input tax refund could not be been issued beyond the period of 05(five) years---Validity---Section 11(5) of the Sales Tax Act, 1990, ('the Act, 1990') stipulated that no order would be made by the Officer of Inland Revenue unless a show-cause notice to the person in default was given within five years of the relevant time---Issuance of show cause Notice within five years was a mandatory requirement for an action under Ss.11(2) & 11(3) of the Act, 1990 as the term "shall" used in S. 11(5) of the Act, 1990 had made the compliance of said provision of law mandatory, thus there was no escape from the same---Show-cause notice, in the present case, was hopelessly barred by the statutory time limitation as the same was issued after the prescribed time limit of five years under S.11(5) of the Act, 1990 and once limitation had started to run and had come to an end, the taxpayer had acquired vested right of escapement of assessment by lapse of time---Appellate Tribunal Inland Revenue set-aside the orders passed by both the authorities declaring impugned show-cause notice barred by time and without lawful authority---Appeal filed by the registered person was allowed, in circumstances.

AL-MEEZAN COTTON PROCESSING, SAMMUNDRI ROAD, FAISALABAD vs The COMMISSIONER INLAND REVENUE (RTO), FAISALABAD Ss — 2024 PTD 124 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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