Law: Sales Tax Act, 1990

Section: 2(33),3,6,10,22,23,33,34,33(4)(f),36,45A ,47

ORDER MUHAMMAD IQBAL KALHORO, J.--By this judgment we intend to dispose of present reference application preferred by the applicant against the order of the Appellate Tribunal dated 20-8-2003 in Sales Tax Appeal No.K-106/03 whereby the appeal of the respondent was allowed and the order dated 25-3-2003 passed by the Additional Collector of Sales Tax (Adjudication), Karachi was set aside. 2. As per relevant facts of the case, Messrs Silver Corporation situated at 25/A, 4th Floor, Arkay Square, Shahrah-e-Liaquat, Karachi, obtained refund during the month of September, October and November, l999on the basis of bogus and invalid Sales tax invoices, in which the description of the goods purchased did not match with the goods actually exported. Thus, Messrs Silver Corporation unlawfully and fraudulently obtained refund amounting to Rs.46,24,121 which was recoverable from them under section 36 of the Sales Tax Act, 1990 (hereinafter referred as the Act, 1990) along with additional tax under section 34 ibid and it also attracted the penal action under section 33 of Sales Tax Act, 1990 for violation of sections 2(37), 3, 6, 10, 22 and 23 of the Act, 1990. Messrs Silver Corporation were accordingly served with a show-cause notice C.No.16(33) Cont/Tech/STE/SC/2000/ 14333 dated 19-4-2000 as to why sales tax amounting to Rs.46,24,121 should not be recovered from them under section 36 of the Act, 1990 along with additional tax (which would be re-calculated upto the actual date of payment) under section 34 and as to why other penal action might not be taken against them under section 33 of the Act, 1990. 3. The respondent submitted an interim reply to the show-cause notice through their consultant on 3-5-2000; thereafter they were accordingly provided the copies of invoices considered by the department to be the invoices not relevant to the export against which sales tax refund was claimed. 4. After hearing the parties, the appellant passed the order in original, wherein he in the concluding para held as under:- "18. In view of the foregoing observations, tend to agree with the departmental contention. Thus the charges stated in the show-cause notice stand established. I,…

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