Law: Sales Tax Rules, 2006

Section: R-12,12(5)

[Sales Tax Rules, 2006]......Rule 12(5),,. Input tax,,. Adjustment,, Invoices,, Rejection,,. Black listing,, Suppliers of the registered person had not been black listed till to date therefore question of rejection of refund or input tax credit under Rule 12(5) of the Sales Tax Rules 2008 could not be arose, provisions of Rule 12(5) could also not be applied to the invoices issued by the supplier/registered person before the period of its suspension unless the black listing happened due to the commission of tax fraud or tax evasion in which the buyer also had some nexus or contribution,,. Data available on FBR's web portal reflected that the purchases had been made by the respondent prior to blacking / suspension of registration of the suppliers moreover the returns filed by the suppliers for the relevant tax period duly showed the supply of the goods in Annex-C of the returns, transactions were cross verifiable from the returns filed by the purchaser and the suppliers through FBR's web portal,, Learned CIR (A) had already protected the interest of revenue, the Revenue come up in this appeal without any reason, the appeal being frivolous and without any merit, was dismissed and the order passed by the learned CIR (A) was affirmed,, ORDER This order shall dispose of the titled appeal filed by the department/revenue against the order dated 29.12.2012 passed by the Learned Commissioner Inland Revenue (Appeals-III), Islamabad. 2. The grievance of the revenue is that the Learned Commissioner Inland Revenue (Appeal) accepted the appeal of the registered person/respondent, pertaining to adjustment of input tax. The Learned DR has submitted that CIR (A) was not justified to allow input tax adjustment on the invoices of suppliers which were suspended / blocked / black listed in disregard of the prevailing law. He submitted that according to rule 12(5) of the Sales Tax Rule 2006, the invoices issued by black listed persons whether prior or after black listing are liable to rejection. He submitted that the suppliers of the respondent / registered person were blocked. The learned AR on the other hand has submitted that the period involved in purchases from supplier Faisal…

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