HUFFAZ SEAMLESS PIPE INDUSTRIES LTD. vs COMMISSIONER (APPEALS-III), SINDH REVENUE BOARD, KARACHI Ss

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HUFFAZ SEAMLESS PIPE INDUSTRIES LTD. VS COMMISSIONER (APPEALS-III), SINDH REVENUE BOARD, KARACHI Ss. 57 & 59(7)---Original order, assailing of---Appeal before Commissioner (Appeals), filing of---Statutory period to pass first Appellate Order, non-observance of---Effect---Such pending Appeal to be transferred to the Appellate Tribunal Sindh Revenue Board---Scope---Record revealed that appellant filed appeal before Commissioner (Appeals) within time which was disposed of after 1,918 (one thousand, nine hundred and eighteen) days of expiry of statutory period i.e. 120 days---Commissioner (Appeals) failed to provide any substantial justification for passing "the first Appellate Order" after the statutory deadline---In the absence of evidence or valid reasoning for such delay, it could not be attributed to the appellant---Section 59 (7) of the Sindh Sales Tax on Services Act, 2011 ('the Act, 2011 ' ) mandates that the Commissioner (Appeals) must transfer any undecided appeal to the Appellate Tribunal Sindh Revenue Board ('Tribunal') if it is not resolved within the statutory period---There is no documentation explaining why the Commissioner (Appeals) continued the proceedings beyond said period---Department mentioned that there was a significant backlog of appeals before the Commissioner (Appeals) and it was practically impossible to resolve them within the statutory timeframe, however, such arguments lacked legal validity, as the law already provides a remedy for such situation by requiring the transfer of undecided appeals to the Tribunal---The word "as" used in S. 59(7) of the Act 2011 creates a deeming effect, indicating that if an undecided appeal is transferred the Appellate Tribunal, it is considered as if it was filed against the order of the Commissioner (Appeals)---After the expiration of the statutory period, the office of the Commissioner (Appeals) effectively becomes coram non judice, meaning it had no authority to continue legal proceedings; which implies that any actions taken beyond the said period lack legal standing, reinforcing necessity for adherence to established timelines in the appellate process---Therefore, in accordance with the fundamental principle of providing legal protection to the appellant, it is deemed appropriate to declare all proceedings initiated by the Commissioner (Appeals) beyond the expiry of the statutory period as "null" and "void", including "the first Appellate Order"---Consequently, instant appeal will be treated as if it has been transferred to this Tribunal under S. 59 (7) of the Act 2011; relevant issue was answered accordingly---Since regarding matter-in-hand (Workers Welfare Fund/WWF) the decision of the Council of Common Interest that WWF would remain with FBR was in field, the assessing officer was not justified in levying WWF upon Appellant ; hence; relevant point was answered in negative i.e. in favour of Appellant and against the Department---Appellate Tribunal Sindh Revenue Board set-aside the impugned Original Order---Appeal was allowed.

HUFFAZ SEAMLESS PIPE INDUSTRIES LTD. vs COMMISSIONER (APPEALS-III), SINDH REVENUE BOARD, KARACHI Ss — 2026 PTD 509 BOARD-OF-REVENUE-SINDH-APPELLATE-TRIBUNAL

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