ISLAMABAD: The Lahore High Court (LHC) has set aside the conditions laid down by the Appellate Tribunal for granting stay order and directed the tribunal to decide appeals of the petitioners within 30 days.
By this single judgment, the LHC has decided the Writ Petition No 49857 of 2024, Writ Petition No 50600 of 2024 and Writ Petition No 50310 of 2024 as common question of law, that is, imposition of condition on grant of stay, is involved therein.
According to an order issued by the LHC, it is noted that the impugned conditions in the orders assailed in these petitions have been imposed by the Appellate Tribunal in a slipshod manner that hardly shows application of mind on part of the Appellate Tribunal, therefore, the same are manifestly arbitrary and of no legal effect.
In view of above, all four constitutional petitions are allowed and the impugned conditions qua deposit of certain amounts of tax are set aside. The Appellate Tribunal is directed to decide appeals of the petitioners within 30 days from the receipt of certified copy of this judgment. There shall be no order as to costs. Office shall send certified copy of this judgment to the concerned
Appellate Tribunal. It is clearly noted that in the relevant provisions, authority of the Appellate Tribunal to grant stay during pendency of appeal before it is not conditioned by the requirement of deposit or payment of
certain amount of tax determined by the forum below. In that way, the provisions are quite distinct and distinguishable from sub-section (10) of section 133 of the Ordinance which restricts or limits authority of this Court to stay recovery of tax, while a Tax Reference is pending, subject to deposit with the assessing authority of not less than 30% of the tax determined by the Appellate Tribunal.
Record reflects that in the titled petition, stay against recovery
of impugned tax demand has been granted for a period of 30 days subject to payment of 10% out of total tax demand within five days; in W.P.No.49857 of 2024, stay for a period of 60 days has been granted subject to payment of Rs 50 million out of total tax demand within five days; in W.P.No.50600 of 2024, stay for a period of 30 days has been granted subject to payment of 5% of the
disputed tax demand; and in W.P.No.50310 of 2024 stay for a period of 15 days has been granted subject to deposit of 25% of total tax demand.
Appellate Tribunal is the first extra-departmental/independent forum for deciding the disputes vis-a-vis tax liability under the Ordinance. Historically, in acknowledgment of the principle of unrestricted access to justice, this Court as well as other High Courts have been granting stay against recovery of any tax demanded by the concerned revenue authorities till decision of appeal before at least one extra-departmental forum, the LHC order added.
Copyright Business Recorder, 2024
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