Law: Sales Tax Act, 1990

Section: 24

(a) Sales Tax Act (VII of 1990)--- ----S.24---Re-audit of registered person---Scope---Re-audit being not barred by law, could be ordered, when its foundation was based upon fraud, which would vitiate most solemn proceedings. Messrs Faisal Enterprises v. Federation of Pakistan through Ministry of Finance Islamabad and 4 others 2003 PTD 899 and Messrs Muskzar Knit-wears (Pvt.) Ltd., through Chief Executive, Lahore v. Federation of Pakistan Ministry of Finance, Economic Affairs and Statistics 2004 PTD 714 ref. (b) Fraud--- ----Fraud would vitiate most solemn proceedings. ORDER MIAN SAQIB NISAR, J.---After the sale tax audit of the petitioner having concluded and his liability settled, the Collector, Sales Tax and Central Excise vide order dated 25-2-2003 directed for re-audit; the contents whereof reads as below:-- "Audit of Messrs Sheikh Spinning Mills Ltd, Aiwan-e-Science Building Shahra-e-Jalal-ud-Din Roomi Road, Lahore. Registration No. 03-05-5202-103-91 was conducted for the period 1-10-1997 to 30-6-2002. Soon after completion of audit a secret information was received that the registered person has evaded sales tax. Para 10 of the audit report also indicates that the registered person has been dealing with suspicious units. On the basis of these special circumstances I am satisfied that second audit of the registered person for the period 1-10-1997 to 30-6-2002 is necessary. Audit Division-I is accordingly instructed to carry out this audit". This order when challenged by the petitioner in the constitutional petition, has been upheld through the impugned judgment the reasoning that certain elements of fraud etc. on petitioner's part came to light, on account of the utilization of the bags and also preparation of some fake and forged invoices, therefore, the constitution petition was dismissed.' 2. Learned counsel for the petitioner by relying upon the cases reported as Messrs Faisal Enterprises v. Federation of Pakistan through Ministry of Finance…

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