ORDER: GOVERNMENT OF PAKISTAN LAW, JUSTICE AND HUMAN RIGHTS DIVISION No. 185/2004/FTO-Law Islamabad, the 7th May, 2005 From: Raja Qamar Sultan Section Officer To:The Secretary (TO-II) CBR, Islamabad Sub: Representation under Section 32 of the Ordinance XXXV of 2000 against findings of the Federal Tax Ombudsman dated 28.05.2004 in Complaint No. 805/2003 (M/s. Pace International vs. CBR/Sales Tax Department).
I am directed to refer to your representation No. 1(218)S(TO/03), dated 28.06.2004; on the above subject and to say that the President has been pleased to pass the following order:
2. On 10.06.2002 the complainant received a show cause notice from an officer of Sales Tax stating that an amount of Rs. 264,687 was recoverable from him alongwith additional tax and penalty on account of wrong claim of import tax, suppressed sales and late filing of return for August, 1998.
The Officer made order on 13.05.2003. The FTO has held that the order was time-barred. During the relevant time i.e. from 10.06.2002 to 13.05.2003, section 36(3) of the Sales Tax Act, 1990 read as follows: "The officer of sales tax empowered in this behalf shall, after considering the objections of the person served with a notice to show cause under sub-section (1) or sub-section (2), determine the amount of tax or charge payable by him and such person shall. pay the amount so determined, [;] Provided that order under this section shall be made within [forty five] days of issuance of show cause notice or within such extended period as [and officer of sales tax] may, for reasons to be recorded in writing, fix, provided that such extended period shall in no case exceed ninety days[:] Provided further
2. The department contends that the time limit under section 36(3) ibid was merely directory and not mandatory. The contention oes not seem to be valid. Where inaction on the part of a pubic unctionary within the prescribed time is likely to affect the rights f a citizen the prescription of time is deemed directory but where public functionary is empowered to create liability against a itizen only within the prescribed time it is mandatory. The FTO's decision must be sustained.
3. Accordingly, the President has been pleased to reject the representation of the department. Sd/- RAJA QAMAR SULTAN) SECTION OFFICER