COLLECTOR OF CUSTOMS, SALES TAX (WEST), KARACHI VS Messrs K & A INDUSTRIES, KARACHI, 2006 PTD-SUPREME-COURT 537 (2005)

(On appeal from the judgment/order dated 4-3-2004 passed by High Court of Sindh, Karachi in S.T.A. No. 595 of 2002).

Sales Tax Act (VII of 1990)---

----S. 36(2)---Additional tax, demand of---Issuance of show-cause notice on 12-8-1999 in respect of year, 1994-95---Validity---Such notice had been issued beyond limitation prescribed in S.36(2) of Sales Tax Act, 1990---High Court rights struck down such demand in circumstances.

Akhlaq Ahmed Siddiqui, Advocate-on-Record/Advocate Supreme Court for Petitioner.

Nemo for Respondent.

Date of hearing: 12th July, 2005.

ORDER

IFTIKHAR MUHAMMAD CHAUDHRY, C.J.---This petition calls in question the following order passed by the High Court of Sindh Karachi:-

"By the impugned order the appeal filed by the respondent was allowed and the demand of Additional Tax was struck down for the reason that the show-cause notice, dated 12-8-1999 was beyond the prescribed limitation in terms of subsection (2) of section 36 of the Sales Tax Act, Mr. Abdul Sattar Silat was not able to dislodge the finding which is based on facts. Consequently, the appeal has no merits and the same is dismissed, with no order as to costs."

2. Learned counsel when confronted with the provisions of subsection (2) of section 36 of the Sales Tax Act, and was called upon to explain as to whether in respect of the year of 1994-95, show-cause notice, dated 12th August, 1999, was within the prescribed limitation i.e. three years. He could not answer satisfactorily. Thus it is held that show-cause notice was served beyond the period of limitation as prescribed in subsection (2) of section 36 of the Sales Tax Act and as such learned High Court had rightly non-suited the petitioner.

Petition is dismissed and leave declined.

S.A.K./C-48/SCLeave refused.