Law: Sales Tax Act, 1990

Section: 2(37),3,3(1),6,7,8,11(2),11(3),22,23,26, 33(5),33(6),33(13),73

Law: Constitution of Pakistan, 1973

Section: 10A,117,118

Sales Tax Act, 1990 (VII of 1990) - Sections: 2(37), 3, 3(1), 6, 7, 8, 11(2), 11(3), 22, 23, 26, 33(5), 33(6), 33(13), 73 - SRO 345 (1)/2010, 24-05-2010 - SRO 597(I)/2012, 01-06-2012 - Constitution of Pakistan, 1973, Art. 10A, 117 & 118 - Scope of tax - Determination of tax liability - Failure to charge and pay tax under normal tax regime on ad valorem basis @ 17% - Evasion of tax - Definite information - Show Cause Notice - Appellant proceeded in absentia and order passed on basis of estimated output tax along with default surcharge and penalty - Appellant was also charged with violation of sections 2(37), 3, 6, 7, 8, 22, 23, 26 & 73 of Act - Demand of tax upheld by CIR(A) in appeal and appeal dismissed - Validity - CIR constituted team for conducting inquiry/investigation against tax payer on receiving information that tax payer is doing tax fraud - It was found that appellant had acquired premises under proprietorship of Munir Ahmad comprising electric steel furnace and re-rolling mills declaring electric reference no. 18111250906905U under so called lease agreement after having collusive arrangements with lessor/owner of premises - Subsequently, he claimed himself user of reference no. 24111259034801 U and got exclusion of Sales Tax against said electricity reference number by concealing facts and did not deposit anything into Govt. exchequer - At present, appellant is non-filer from January, 2014 onwards with huge carried forward - Huge difference is running into millions of rupees in purchases and sales value found leading to massive closing stocks involving heavy amount of stuck up sales tax - Appellant obtained exclusion certificates from Lahore High Court by claiming itself user of electricity reference no. 24111259034801U concealing facts for exclusion of Sales Tax from monthly electricity bill being not covered under Sales Tax Special Procedure Rules, 2007 - Being manufacturer tax was to be assessed on ad valorem basis @17% u/s 3(1) read with section 7 and registered person had to charge and pay sales tax under normal tax regime, but he did not comply with legal provisions - Show Cause Notice was issued for recovery of tax - CIR(A) upheld…