Law: Sales Tax Act, 1990

Section: 2(37),3,7,8,8A,11,21,33

Law: Sales Tax Rules, 2006

Section: 12(5)

JUDGMENT The Judgment of the Court was delivered by, Abid Aziz Sheikh, J. - Through this judgment, we intend to dispose of instant STR No.98/2014 and PTR No.270/2012 arising out of Appellate Tribunal Inland Revenue, Lahore (Tribunal) orders dated 23-4.-2014 and 27-3-2014 (impugned orders) in these references respectively, raising common questions regarding interpretation and applicability of various provisions of Sales Tax Act, 1990 (Act). The form of questions of law framed in these two references are little different, however, in substance, the questions are same which pertains to blacklisting of supplier units and claim of input tax credit against invoices issued by those supplier units. 2. The following common questions of law are raised in these references:- i) Whether under the facts and in the circumstances of the case, the learned ATIR was justified to pass an order in violation of the Rule 12(5) of the Sales Tax Rules, 2006 which clearly states that "during the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales tax refund or input tax credit, and once such person is blacklisted, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such blacklisting, shall be rejected through a self-speaking appealable order and after affording an opportunity of being heard to such person? ii). Whether under the facts and in the circumstances of the case, the learned ATIR was justified to ignore section 8A of the Sales Tax Act, 1990 which provides that where the registered person receiving supply from other unit is in the knowledge that tax paid by him will go un-deposited both are jointly and severally liable for payment of such unpaid amount of tax? iii). Whether under the facts and in the circumstances of the case, the learned ATIR was justified to annul the order of the Taxation Officer whereas the credit of input tax was claimed against the invoices of black listed unit without any physical transfer of goods from the suppliers account to the account of buyer and knowingly used fake invoices to reduce its sales tax liability? Learned counsel did not…