Law: Sales Tax Act, 1990

Section: 33(13)

THIS ORDER PASSED BY: MUHAMMAD WASEEM CH., JUDICIAL MEMBER:--------------- The titled appeal has been filed by the registered person against the impugned order dated 17.01.2012 passed by the CIR(Appeals-III), Lahore, wherein rejection of appeal of the registered person has been challenged. 2. Brief facts of the case are that the department has came to know that the registered person had claimed illegal input tax of Rs. 199,278/-on invoices issued by a blacklisted/suspended unit during the tax period July 2006 which was not admissible. Therefore, a show cause notice under the relevant provisions of Sales Tax Act, 1990 was issued requiring the registered person to explain as to why the aforesaid sales tax should not be recovered from him alongwith default surcharge and penalty. The reply submitted by the registered person did not encourage the adjudication officer and he passed the order in original directed the appellant to pay default surcharge of Rs.231,162/-and penalty u/s 33(13) of the Sales Tax Act, 1990. In appeal, the learned CIR(Appeals) upheld the treatment meted out by the adjudicating officer for the reasons and factors as embodied in the impugned order which is now being impugned in the present appeal. 3. The learned counsel of the registered person has strongly challenged the orders of the authorities below and has contended that the ACIR was not justified in holding that the registered person is responsible to deposit input sales tax amounting to Rs. 199,278/- alongwith 100% penalty and additional tax adjusted against output sales tax liability due to alleged suspended/blacklisted sales tax registered party. In this context he has argued that at the time of transaction the alleged party was not declared blacklisted. He has further asserted that to avoid litigation the registered person has already paid sales tax to the said blacklisted party. He has submitted that when the registered person has deposited the principal amount as bona fide then the department has no reason to impose penalty and default surcharge. At the end of his arguments, he has prayed for vacation of the orders of the authorities below. The learned D.R, on his turn, supported the…

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