Adjudication of appeals

Unnecessary remand resulted in undue delay in cases and consequent prolonging of agony of litigants as well as clogging the court dockets and wastage of precious court time

Supreme Court observed that courts were to bear in the mind the constitutional imperative requiring the State to "ensure inexpensive and expeditious justice".

Appellate Tribunal was the last fact finding forum in the hierarchy of taxation laws and therefore it was bound to discharge its functions diligently

Any opinion on law, by the Appellate Tribunal would lose its credence for consideration by High Court in its advisory jurisdiction if findings of fact arrived at by the Appellate Tribunal were not trustworthy

In case true facts were not ascertainable from available record; Appellate Tribunal was vested with vast powers under S. 132(1) of the Income Tax Ordinance, 2001 to call for any particulars relating to an appeal or cause further enquiry to be made by Commissioner during the appeal proceedings

Under S. 132(3)(c) of the income Tax Ordinance, 2001; Appellate Tribunal could remand a case to the Commissioner or Commissioner (Appeals) for making such an enquiry or taking an action as the Appellate Tribunal may direct

While dealing with matters relating to refund, particularly under the Sales Tax Act, 1990; Appellate Tribunal was required to keep a balance, to ensure issuance of refund to a registered person in accordance with law and protect against fraudulent claims based on fake and flying invoices

Tax which had not been deposited in the national exchequer should not be allowed to be refunded due to a lapse on part of the authorities under a statute and comprehensive mechanism was given in the Sales Tax Act, 1990 both for expeditious issuance of refund and for protecting the national exchequer from any loss

Appellate Tribunal and the tax authorities were required to keep in mind the principle embodied in S.8A of the Sales Tax Act, 1990 which enjoined joint and several liability on registered persons in the supply chain, if a registered person receiving taxable supply from another registered person had reasonable grounds to suspect that some or all of tax payable in respect of the supplies would go unpaid

Rationale behind more than one appellate forum in the taxation laws was to cross-check the exercise of powers by the authorities and ensure proper taxation under the statute.