In Pakistan, Sales Tax References are legal proceedings filed before the High Court under Section 47 of the Sales Tax Act, 1990. These references arise when a taxpayer or the tax authorities challenge a decision made by the Appellate Tribunal Inland Revenue on questions of law.
This section of the Sales Tax Act, 1990 provides the procedure for filing a Sales Tax Reference to the High Court after an order is issued by the Appellate Tribunal Inland Revenue or the Commissioner (Appeals).
Filing a Reference
When a person disagrees with an order from the Appellate Tribunal or Commissioner (Appeals), they can file a reference to the High Court. The reference must be submitted within 30 days from the date the order is communicated.
Content of the Application
The application should be filed in a prescribed form, which includes a statement of the case—a detailed explanation of the facts and legal questions. The complete record of the case from the Appellate Tribunal or Commissioner must also be included, such as the order and any supporting documents. The main purpose is to clearly state the legal question(s) or mixed questions of law and fact that the High Court needs to decide.
Importance of the Deadline
The reference must be filed within 30 days of receiving the order. Missing this deadline can result in the High Court rejecting the reference, unless there is a valid reason for the delay.
Income Tax Ordinance Procedure
Section 47(2) states that the procedure for filing references in the Sales Tax Act follows the same rules as the Income Tax Ordinance, 2001, specifically Section 133. This means the procedures for income tax references to the High Court apply to sales tax references as well, with necessary modifications.
Focus on Legal Questions
The reference focuses on questions of law or mixed questions of law and fact, rather than the facts of the case. The High Court will review and decide on these legal aspects, not on the factual findings of the Tribunal or Commissioner.
In summary, this section establishes the process by which individuals or the tax authorities can challenge decisions made by the Appellate Tribunal or Commissioner in the High Court, focusing primarily on legal issues. The process is largely based on the framework used for income tax references to ensure consistency.