2024 PLP 30 (PTD)
Messrs ISLAMABAD ELECTRIC SUPPLY COMPANY LIMITED Versus ADDITIONAL COMMISSIONER INLAND REVENUE and others
| Citation | 2024 PLP 30 (PTD) |
| Forum / Court | Islamabad High Court |
| Bench Members | Aamer Farooq, J |
| Parties | Messrs ISLAMABAD ELECTRIC SUPPLY COMPANY LIMITED Versus ADDITIONAL COMMISSIONER INLAND REVENUE and others |
| Primary Law | Taxation |
Q1: What are the key laws and sections cited in 2024 PLP 30 (PTD)?
This judgment primarily cites: Taxation as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2024 PLP 30 (PTD)?
The case was heard and decided by the Islamabad High Court bench comprising: Aamer Farooq, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2024 PLP 30 (PTD) (Messrs ISLAMABAD ELECTRIC SUPPLY COMPANY LIMITED Versus ADDITIONAL COMMISSIONER INLAND REVENUE and others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Muhammad Asif Khan for Petitioner.
Headnotes / Summary
Stay of recovery proceedings during pendency of appeal
Petitioner sought a direction to the respondent to decide its pending appeal and, in the meanwhile, restrain the department from initiating recovery proceedings
There should be an adjudication of the grievance by an independent tribunal
An assessee is entitled to adjudication in respect of its disputed tax liabilities by at least one independent forum outside the hierarchy of the respondent department
Constitutional petition was disposed of with a direction to the respondent to hear and decide the appeal within a period of sixty days, and until then, no coercive measures were to be adopted against the petitioner by the department. Mehram Ali v. Federation of Pakistan and others PLD 1998 SC 1445 rel. Messrs Pak Saudi Fertilizers Ltd. v. Federation of Pakistan and others 2002 PTD 679; Z.N. Exporters (Pvt.) Ltd. v. Collector of Sales Tax 2003 PTD 1746; Brothers Engineering (Pvt.) Ltd. v. Appellate Tribunal Sales Tax 2003 PTD 1836 ref.
Judgment & Decree
AAMER FAROOQ, J.
Through the instant petition, under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, the petitioner has sought inter alia direction to respondent No.2 to decide its pending appeal and in the meanwhile restraining respondent No.1 from initiating the recovery proceedings in pursuance of recovery notice dated 02.03.2021 for the tax year 2020.
2. Learned counsel for the petitioner submitted that the impugned notice is illegal, arbitrary and against the law. It was further contended that initiation of recovery proceedings during the pendency of petitioner's appeal is against its fundamental rights guaranteed under the Constitution. It was further contended that it is trite law that unless there is adjudication by one independent forum, no recovery proceedings can be initiated against the assessee. In this behalf learned counsel placed reliance on the case titled "M/s Pak Saudi Fertilizers Ltd. v. Federation of Pakistan and others" (2002 PTD 679), "Z.N. Exporters (Pvt.) Ltd. v. Collector of Sales Tax" (2003 PTD 1746), "Brothers Engineering (Pvt.) Ltd. v. Appellate Tribunal Sales Tax" (2003 PTD 1836). Learned counsel further contended that delay in decision of the appeal is not on part of the petitioner, therefore, impugned recovery notice dated 02.03.2021 may be suspended and recovery proceedings be stopped till the final decision of the appeal by respondent No.2.
3. The submissions made by the learned counsel for the petitioner have substance. In this behalf the Hon'ble Supreme Court of Pakistan in case titled "Mehram Ali v. Federation of Pakistan and others" (PLD 1998 SC 1445) has specifically held that there should be adjudication of grievance by an independent Tribunal and even Lahore High Court in numerous judgments has held that an assessee is entitled to adjudication in respect of his disputed tax liabilities by at least one independent forum outside hierarchy of the respondent department.
4. In view of the above, the instant Writ Petition is disposed of with direction to respondent No.2 to hear and decide the appeal within a period of Sixty days and till then no coercive measures shall be adopted against the petitioner by respondent No.
1. SA/1/Isl. Petition allowed.