Law: Sales Tax Act, 1990

Section: 10,26,73,24

Law: Sales Tax Rules, 2006

Section: 12(5)

(a) Sales Tax Act (VII of 1990)----Ss. 10, 26 & 73---Refund of input tax---Objection of "scrutiny for verification of input tax "---Rejection of refund---Validity---Objection was provisional in nature having not been raised after due examination of the records of supplier whose required scrutiny had not been finalized despite expiry of almost three years---Since, supplier was regularly filing monthly sales tax returns and summary statements under Ss. 26 and 26(5) of the Sales Tax Act, 1990 and payments in respect of all alleged transactions had also been made through banking channel and the computer profile of the said supplier as available on Sales Tax Automated Refund Repository Computer System indicated its status as "operative unit "---Rejection of refund against invoices of such registered supplier was without lawful authority and of no legal effect---Neither any charge of fake transactions nor of tax fraud either on the part of supplier or on registered person had been levelled in show-cause notice without which refund of input tax paid by registered person could not be rejected; and rejection of refund claimed merely on assumptions and presumptions was not warranted under law---Rejection of refund by the sales tax department on the charge of scrutiny for verification of input tax was illegal and unlawful, in circumstances. Commissioner of Income Tax v. Messrs. Fakir Cotton Ginning and Processing Industries Ltd. PLD 1991 SC 280; Collector of Customs v. Muhammad Mehfooz PLD 1991 SC 630; Messrs Avari Hotel Ltd. v. Collector of Sales Tax and 3 others 2000 PTD 3765 and 2010 PTD (Trib.) 857 rel. (b) Taxation--- --Assesee can be subjected to tax under the provisions of law which are clear and unambiguous. (c) Sales Tax Act (VII of 1990)--- ----Ss. 10 & 21- Sales Tax Rules, 2006, R.12(5)---Refund of input tax---Objection of "registration suspended" of the supplier---Rejection of refund---Validity---Rejection of refund for period in question on the charge of "registration suspended" was without any lawful ground as refund against invoices of a person whose registration was suspended could be rejected upon his black-listing by the Collector of Sales Tax…

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