Law: Sales Tax Act, 1990

Section: 11,23,33,34

Sales Tax Act (VII of 1990)--- ----Ss. 11 & 23---Input tax credit for relevant period claimed by registered person---Such input tax found missing in supplier's sale summary---Plea of registered person was that for non-deposit of sales tax by its supplier, recovery proceedings could be initiated against registered person---Validity---Assessing Officer was legally obliged to determine veracity of such plea---Registered person, if became successful, in producing credible evidence of payment of sales tax corresponding to his input tax claim, then its such claim might be allowed and simultaneously recovery proceedings might be initiated against supplier for his failure to deposit sale tax. ORDER The appellant has filed appeal before this Tribunal against Order-in-Appeal No.ST-374 of 2011 dated 15-11-2012 passed by the Commissioner Inland Revenue (Appeals-II), Islamabad on the following grounds:-- (1) That the order of the learned Commissioner Inland Revenue (Appeals-II), Islamabad is bad in law and against the fact of the case. (2) That the learned Commissioner Inland Revenue (Appeal-II) has legally erred disallowing input tax adjustment of Rupees 3,445,640 claimed by the appellant in the sales tax returns submitted for the tax period November 2011 to January 2012. His action on the basis of month wise consolidated amount of discrepancies and contradiction given in the show cause notice and by ignoring the legal provisions as well as written submissions of the appellant is unsustainable being illegal and void. (3) That the learned Commissioner Inland Revenue (Appeal-II) was not justified to hold the appellant at fault for non deposit of sales tax by the supplier of goods when payment against supply of goods including sales tax was made by the appellant to the supplier through proper banking channel. Hence refusal of input tax adjustment tantamount to double taxation which is not permitted under the scheme of law. (4) That the distinctive invoice numbers of invoices issued by the suppliers who allegedly not reported sales to Pakistan Television Corporation were not given in the order. (5) That the amount of Rs.3,445,640 ordered to be recovered from the appellant…

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