Law: Sales Tax Act, 1990

Section: 2,2(37),33

(Sales Tax Act, 1990 (VII of 1990)].........Sections 2(37) & 33.General Penalties Input tax adjustment by taxpayer on basis of fake invoices and others issued by blacklisted suppliers ... Violation of provisions of Sales Tax Act and commission of offences u/s 33 Tax Fraud Allegations against taxpayer Show Cause Notice Passing of order by Adjudicating Officer on failure of taxpayer to furnish reply to Show Cause Notice Confirmation of action of Adjudicating Officer by CIR(A) Validity Passing of order against taxpayer after limitation of 120 days - Assumption of jurisdiction by DCIR to issue Show Cause Notice - Questions for determination - Whether impugned assessment order/order-in-original has been passed after statutory limit provided by law, therefore, is illegal, void ab initio and of no legal effect and are thus annulled - Held yes - Whether DCIR who issued Show Cause Notice and passed impugned Assessment Order, could not assume jurisdiction to issue Show Cause Notice and pass assessment order under law, therefore, same are without lawful authority and void ab initio - Held yes - Whether there is no option except to reach conclusion that Revenue has failed to prove allegation leveled against appellants that they claimed inadmissible input tax adjustment on basis of invoices issued by their suppliers which were blacklisted subsequent to transactions made by appellant - Held yes. The impugned assessment Order/Order in Original has been passed after the statutory limit provided by law, therefore is illegal, void ab inito and of no legal effect. Consequently, the orders of the authorities are hereby annulled and the appeal of the appellant/registered person stands accepted. The Deputy Commissioner Inland Revenue, who issued the show cause notice and passed the impugned Assessment Order, could not assume the jurisdiction to issue the show cause notice and pass the impugned Assessment Order under the law therefore, the same are without lawful authority and void ab initio. It is abundantly clear from reading the definition of "tax fraud" that the mandatory condition put forth for committing tax fraud is that the alleged person should have done any act…

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