Law: Sales Tax Act, 1990

Section: 3,22,36

Sales Tax Act (VII of 1990)--Ss. 3 & 36-Scope of tax-During audit it was detected that registered person did not show any opening and closing inventory balance in the sales tax record while the income tax record showed an opening inventory and closing inventory were declared on which it was assumed the unit had suppressed sales with the sales tax-Show-cause notice was contested on the ground that for the purposes of fixing liability of sales tax income tax record could not be made basis- Liability was adjudged against the unit by rejecting such Contention- Validity-Income Tax Law and Sales Tax Act were based upon different pattern and footing-One record of another department could not be relied upon for determining the liability under other law-Income tax record could be looked into for the purposes of conducting investigations and if any difference is detected then that itself should be substantiated with solid and convincing evidence by comparing that information with the records maintained under Sales Tax Act, 1990-Order passed by both the lower forums were declared null and void by the Appellate Tribunal. Mohammad Siddique and others v. Deputy Collector Excise and Taxation Sales Tax Officer, Mirpur and others 1990 PTD 1088 and Messrs Al-Hilal Motors and others v. Collectors Sales Tax and Central Excise (East) Karachi and others 2004 PTD 868 rel. THIS JUDGMENT DELIVERED BY: SYED KAZIM RAZA SHAMSI, (MEMBER JUDICIAL).- Common question of law and fact is involved in both these appeals which are being decided by this single consolidated judgment. 2. Sales Tax Appeal No. 1441/B of 2005 is directed against an Order-in-Appeal, dated 24-10-2005 passed by the Collector Appeals, Lahore whereby the Order-in-Original passed by Deputy Collector (Adjudication), Lahore, dated 30-6-2005 was upheld adjudging the liability of Rs.797,014 in respect of short payment of sales tax along with additional tax and penalty of Rs. 5,000. 3. Sales Tax Appeal No.296/LB of 2006 is directed against an order-in-appeal, dated 30-11-2005 passed by Collector Appeals, Multan, whereby order-in-original, dated 4-9-2004 passed by Deputy Collector (Adjudication), Multan was upheld whereby the…

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