Law: Sales Tax Act, 1990

Section: 2(37).8A,11(2),21,23,73

ORDER CH. SHAHID IQBAL DHILLON (JUDICIAL MEMBER). The titled appeal preferred at the instance of the registered person is directed against the order dated 29.10.2013 passed by the learned CIR (Appeals-lll), Lahore. 2. Briefly stated, the facts of the case are that on the basis of an information received from the Directorate General of Intelligence & Investigation it was observed by the Assessing Officer that the appellant during the period April, 2003 to November, 2003 had claimed input tax amounting to Rs. 35,59,333/- and Special Excise Duty of Rs. 1,92,400/- on the basis of fake invoices issued by the suppliers belonging to a gang of fraudsters. On the basis of said allegation show cause notice u/s 11(2) of the Sales Tax Act, 1990 issued and considering the reply furnished by the appellant as unsatisfactory Order-in-Original No.438/A-02 dated 20.05.2013 was passed. Being aggrieved, the appellant preferred first appeal and learned CIR(A) dismissed the same by upholding the treatment accorded by the Assessing Officer. 3. The learned A.R challenged the impugned order as unjustified and arbitrary. He contended that the allegation of tax fraud against the appellant is baseless and frivolous because the alleged goods were procured under the coverage of proper sales tax Invoices issued - in terms of Section 23 of the Sales Tax Act, 1990 duly incorporated in supplier's sales registers and summary statements and the suppliers were regularly filing their sales tax returns. Also submitted that copies of ledgers, bank statements, and invoices were duly furnished not only at the adjudication stage but also before the learned CIR(A) but both the authorities below had acted in a non-judicial manner and brushed aside the contention without any cogent reason. Similarly the learned A.R submitted that provisions of Section 73 of the Sales Tax Act, 1990 for payments through banking channel had duly been complied with, therefore refund of input tax against Invoices of such suspended or blacklisted persons cannot be denied and even cannot be recovered after insertion of sub-section (3) of Section 21 wherein It has been categorically provided that input tax shall be allowed if…

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