MUSARRAT HILALI, J. Petitioner through the instant petition under Article .199 of the Constitution of Islamic Republic of Pakistan, 1973, has prayed for issuance of an appropriate writ to the effect that the impugned notices dated 24.10.2018 and 28.10.2018 and any proceedings consequent thereto or arising therefrom are illegal, unlawful, without lawful authority and thus of no legal effect and, therefore, be quashed and set aside. It has also been prayed that respondents Nos.2 to 4 may be refrained from proceeding further or passing any adverse order against the petitioner in respect of the impugned notices.
2. In essence, it is the, petitioner's case that during audit of sales tax record of the petitioner for financial years of 2013 to 2018, the respondents observed the discrepancies of inadmissible input tax and in this regard two separate show-cause notices dated 24.10.2018 and 28.10.2018 for the tax period of November 2013 to March 2018 and July 2013 to October 2013 respectively, were issued to him. Feeling aggrieved therefrom, petitioner has filed the instant constitutional petition.
3. Comments were sought from respondents, which have been received, wherein issuance of the desired writ is strongly opposed.
4. Arguments heard and documents annexed with the petition gone through.
5. In the instant case, petitioner has called in question separate show-cause notices dated 24.10.2018 and 28.10.2018 for the tax period of November 2013 to March 2018 and July 2013 to October 2013 respectively, issued by the Deputy Commissioner-IR, who, per stance of the petitioner, has no lawful authority or jurisdiction, whatsoever to meddle with matters of adjudication so provided in Section 11(2).
6. In this backdrop of the situation, we seek guidance from the judgment dated 20.11.2018 of august Supreme Court of Pakistan, rendered in Civil Petitions Nos.398-L, 584-L, 671-L to 675-L, 774-L, 775-L, 812-L, 815-L, 911-L, 912-L, 913-L, 919-L, 984-L, 985-L, 1005, 1184, 1684-L, 1688-L to 1690-L.; 1729-L, 1796-L, 1812-L, 1821-L to 1827-L, 1850-L to 1854-L, 1859-L, 1860-L, 1878-L, 1887-L, 2038-L, 2085-L, 2086-L, 2090- L, 2091-L, 2129-L and 3480 of 2018 titled The Commissioner Inland Revenue, Zone-Ill, RTO-II, Lahore v. Messrs Hamza Nasir Wire and others, wherein the Apex Court almost settled the issue in hand. Relevant extract from the judgment is reproduced as under:-
10. In the above background, the question arises whether the disputed show-cause notices were issued by the OIRs under section 11(3) of the Act in the valid exercise of their powers. It would be appropriate at this stage to reproduce section 11 ibid: "11. Assessment of Tax and recovery of tax not levied or short-levied or erroneously refunded.
(1) Where a person who is required to file a tax return fails to file the return for a tax period by the due date or pays an amount which, for some miscalculation is less than the amount of tax actually payable, an officer of Inland Revenue shall, after a notice to show-cause to such person, make an order for assessment of tax, including imposition of penalty and default surcharge in accordance with sections 33 and 34: Provided that where a person required to file a tax return files the return after the due date and pays the amount of tax payable in accordance with the tax return along with default surcharge and penalty, the notice to show-cause and the order of assessment shall abate.
(2) Where a person has not paid the tax due on supplies made by him or has made short payment or has claimed input tax credit or refund which Is not admissible under this Act for reasons other than those specified in subsection (1), an officer of Inland Revenue shall, after a notice to show-cause to such person, make an order for assessment of tax actually payable by that person or determine the amount of tax credit or tax refund which he has unlawfully claimed and shall impose a penalty and charge default surcharge in accordance with sections 33 and 34.
(3) Where by reason of some collusion or a deliberate act any tax or charge has not been levied or made or has been short levied or has been erroneously refunded, the person liable to pay any amount of tax or charge or the amount of refund erroneously made shall be served with a notice requiring him' to show-cause for payment of the amount specified in the notice.
(4) .....
(4A) ....
(5) No order under section shall be made by an officer of Inland Revenue unless a notice to show-cause is given within five years, of the relevant date, to the person in default specifying the grounds on which it is intended to proceed against him and the officer of Sales Tax shall take into consideration the representation made by such person and provide him with an opportunity of being heard: Provided that order under this section shall be made within one hundred and twenty days of issuance of show-cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, fix provided that such extended period shall in no case exceed ninety days: Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso. ...
(emphasis supplied)
It may be noticed that, while the Act confers multiple powers on OIRs, the provisions of section 11 ibid vests powers on such officers specifically in two respects, namely, the assessment and recovery of tax. Thus all OIRs of different grades appointed under section 30(1) of the Act possess the power to issue show-cause notices under section +11 ibid. Consequently, the impugned show-cause notices were issued by the OIRs competently under section 11(3) ibid in aid of proceedings commenced for recovery of tax.
7. While applying the ibid judgment of august Supreme Court to the case in hand, we feel no difficulty to hold that as the impugned show-cause notices have been issued by the Deputy Commissioner-IR in accordance with law, therefore, the instant writ petition, being without any merit, stands dismissed.