Law: Sales Tax Act, 1990

Section: 7,7(1),8(a)

(a) Sales Tax Act (VII of 1990)---Ss. 7(1) & 8(a)---Input tax adjustment claimed against bills of electricity consumed in residential areas and administrative offices in Cement Factory of taxpayer---Validity---Such use of electricity was meant for furtherance of taxable supply, thus, was admissible. S.T.A. No.1392; 2007 PTD 473; 2006 PTD (Trib.) 196; 2005 PTD (Trib.) 1358; Messrs Pioneer Cement Limited, Khushab's case S.T.A. No.807/LB/2002; S.T.A. No.1392/LB of 2009; 2010 PTD (Trib.) 1874 and Messrs Nishat Mills Ltd. v. Superintendent of Central Excise PLD 1989 SC 222 ref. (b) Sales Tax Act (VII of 1990)--- ----Ss. 7(1) & 8(a)---Input tax adjustment claimed against bills of electricity consumed in residential areas and administrative offices situated within Cement Factory of the taxpayer---Non-mentioning of sales tax registration number of taxpayer on such bills---Effect---Such default on part of taxpayer was a procedural lapse---Claimed adjustment could not be denied on such technical ground. PLD 1998 SC 64 ref. ORDER M.A. JAVED SHAHIN, JUDICIAL MEMBER.---(1) This appeal preferred at the instance of the registered person is directed against the Order-in-Original No. 19 of 2002 dated 15-11-2001 passed by Collector of Customs. Sales Tax and Central Excise (Adjudication), Faisalabad. 2. Facts of the case in brief are that audit of the appellants company for the tax periods 9 of 2000 to 5 of 2001 was conducted and it was observed that the appellant is adjusting input tax on electricity bills which was being used in colony (residential area) and administrative offices which was not admissible under section 8(a) of the Sales Tax Act, 1990. The management of the units was asked to produce the record of electricity consumed. From examination of record, it was ascertained that the appellant had adjusted input tax amounting to Rs.23,47,968 under this head. It was further observed that there are two bills involving sales tax amounting to Rs.1,58,95,030 which were neither in the name of appellants nor contain the sales tax registration number. Hence, the appellants had evaded the aforesaid sales tax by way of wrong adjustment during the periods 9/2000 to 6/2001…

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