Law: Sales Tax Act, 1990

Section: 11(2),8(1)(a),21(3),36(1),73

Sales Tax Act (VII of 1990)--- ----Ss. 11(2), 8(1)(a), 21(3), 36(1) & 73---S.R.O. 555(I)/98 dated 1-7-1996---S.R.O. 1381(I)98 dated 28-11-1998---Assessment of tax---Tax period 2006-2007---Refund of input tax---Recovery of being input adjusted against blacklisted/suspended units---Taxpayer contended that adjudication order lacked jurisdiction in respect of cases beyond pecuniary limit of one million rupees; that provisions of S.73 of the Sales Tax Act, 1990 for bank payments had duly been complied with; and that input tax credit against invoices of black listed/suspended suppliers could not be denied after insertion of subsection (3) of S.21 of the Sales Tax Act, 1990 through Finance Act, 2011---Validity---Period of refund claim was 2006-2007 whereas the black listing/ suspension was made at later dates i.e. after the period refund claimed/ adjusted input tax---On the basis of suspension/blacklisting at later dates the refund claimed/adjusted input tax against the invoices issued by the units having blacklisted/blocked status could not be disallowed---Contention regarding retrospective application of the black-listing order/notification were quite convincing---Refund claimed/adjusted input tax was allowed---Case was remanded for checking as to whether or not the application of S.73 of the Sales Tax Act, 1990 had been affected properly---If the answer was in affirmative the registered person should be given effect accordingly and in case of non affirmation the registered person should be given an opportunity of hearing before passing the order. ORDER The titled appeal preferred by the registered person is directed against the order of the learned Commissioner(Appeals), Faisalabad dated 29-2-2012. 2. Facts of the case, in brief, are that the department after having observed from scrutiny of record that the registered person had received refund of input ax for the period 2006-2007, the appellant was confronted through a show-cause notice against sales tax liability of Rs.1,922,458. During the adjudication proceedings the charges levelled in show-cause notice were contested but the adjudicating authority raised the demand of sales tax vide Order-in-Original…

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