Law: Sales Tax Act, 1990

Section: 8(1)(ca),2(37),3(1),6(2),7(1),7(2),8(1)( d),8A,22(1),23(1),26(1)

Sales Tax Act (VII of 1990)--- ----Ss. 8 (1)(ca), 2(37), 3(1), 6(2), 7(1), 7(2), 8(1)(d), 8A, 22(1), 23(1) & 26(1)---Tax credit not allowed---Joint liability---First Appellate Authority found that the suppliers of the taxpayer were blacklisted and they did not deposit the tax into the government treasury and taxpayer was not entitled to claim of input in terms of S.8(1)(ca) of the Sales Tax Act, 1990---Validity---Department was not within the ambit of law while passing the order against the taxpayer for the reason that the suppliers in question were operative during the period under consideration when the business/transaction took place---If such was allowed to happen then the business would come to halt because nobody would know with regard to fate of its business concern if the subsequent events like declaring a taxpayer blacklisted were allowed to cover the period when the other business concern with whom it was dealing with, was operative and the registered person who had been called upon to show-cause entered into business transaction with the subsequently blacklisted business in good faith and as per prevailing conditions at that time---Appeal of the taxpayer was allowed and orders passed by the lower officers were directed to be vacated. 2011 PTD 2332; 1993 PTD 713 and 2005 SCMR 492 ref. Messrs D.G. Khan Cement Ltd. v. Federation of Pakistan and others Writ Petition No.3515 of 2012 rel. ORDER CH. ANWAAR UL HAQ (JUDICIAL MEMBER).---The captioned appeal has been directed against the Order-in-Appeal No.72 dated 2-1-2012, passed by the learned Commissioner Inland Revenue, Appeals-III, Lahore. 2. The facts leading to the filing of present appeal are that during the scrutiny of sales tax record of the appellant in respect of the tax periods August, 2005, April, 2006, and October, 2006 it was observed that the appellant had claimed illegal input tax of Rs.224,570 on invoices issued by blacklisted units, which was not admissible to the appellant under the law and thus contravened sections 2(37), 3(1), 6(2), 7(1), 7(2), 8(1)(d), 8A, 22(1), 23(1) and 26(1) of the Sales Tax Act, 1990 read with 2(37) ibid details of which are as under:- Sr. No. Sales tax amount…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492