Law: Sales Tax Act, 1990

Section: 11(3),25,36,46,71,72,72B,214c

Law: General Clauses Act, 1897

Section: 24A

Law: Sales Tax Special Procedure Rules, 2007

Section: 5(3)

Sales Tax Act, 1990 (VII of 1990) - Sections. 11(3), 25, 36, 46, 71, 72, 72B, 214c - Special procedure rules, 2007, R. 5(3), SRO. 608(1)/2014, 02-07-2007 - General Clauses Act, 1897 Section 24-A - Assessment of Tax and recovery of tax not levied or erroneously refunded - Audit observations - Short payment of tax - Receipt of excessive input tax - Show Cause Notice - Reply to Show Cause Notice found unsatisfactory - Determination of tax liabilities, assessment and demand of lax with penalties and default surcharge - CIR(A) upheld all charges leveled against appellant, except in respect of issue of withholding Sales Tax rest of order passed by ACIR maintained in appeal - Validity - Appellant Company operates under chapter II of Sales Tax Special Procedure Rules, 2007, engaged in business of Sales/Service of Honda brand parts and commission income from 'Honda' brand cars in Pakistan - Controversy is based on audit observations - Audit report followed by show cause notice was issued by ACIR requiring explanation on various charges leveled therein - Through assessment, sales tax liabilities on account of retail sales, short payment of tax and excessive input tax along with penalties and default surcharge were adjudged against appellant - Charges upheld by CIR(A) in appeal - Challenge to - AR contended that department earlier issued income tax audit notice u/s 214C and later on withdrew the same on the ground that case was never selected FBR. Later on, it was again intimated that case was selected for Sales Tax audit u/s 72B. ACIR deputed auditor, but taxpayer made complaint before Chief Commissioner relating to unfair practice during audit and same is pending with Chief Commissioner - He further argued that huge arbitrary tax demand with penalties, which are purely on flimsy ground bluntly speaks a lot about mindset of ACIR which is nothing but act of maladministration of justice - AR also contended that foremost issue which requires consideration is whether or not tax paid by appellant under Special Procedure Rules constitute fulfillment of statutory obligation under the Act against sale of taxable goods - He further emphasized that in the expression final…