The appellate tribunal case, STA No. 251/MB/2024, involves appellant challenging the suspension of their Sales Tax Registration by the Commissioner Inland Revenue (CIR), Multan Zone. The appellant's primary contention, represented by advocates Muhammad Imran Ghazi and Muhammad Naseer-ud-Deen Hamayoun, is that the CIR Multan Zone lacked jurisdiction over them, as their jurisdiction falls under the CIR Dera Ghazi Khan Zone, according to the Jurisdictional Notification dated 09.01.2024.
The appellant argued that the suspension order was void ab initio, illegal, and lacked the necessary legal grounds, including the absence of a hearing opportunity and evidence of tax fraud or evasion, violating Article 10A of the Constitution of Pakistan which guarantees fair trial and due process.
The tribunal examined the jurisdictional issue, emphasizing the importance of adhering to the territorial boundaries defined under Sections 30 and 31 of the Sales Tax Act, 1990. It was determined that the CIR Multan Zone did not possess the legal authority to suspend the appellant's registration, as the appellant's business operations in Layyah fall under the Dera Ghazi Khan Zone's jurisdiction. The tribunal cited legal principles, including the maxim "nemo dat quad non habet" (one cannot give what they do not possess), to highlight the illegality of actions taken without proper jurisdiction.
The tribunal concluded that the suspension order issued by the CIR Multan Zone was void and without legal effect, as it was based on defective jurisdiction. The tribunal vacated the suspension order and show-cause notice for blacklisting, directing the tax department to restore the appellant's sales tax registration number and resolve jurisdictional issues in line with superior court judgments. The tribunal also reiterated the necessity of adhering to principles of natural justice, ensuring that any proceedings affecting a person's rights must provide an opportunity for a fair hearing.
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