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Sales Tax Act (VII of 1990)-- --Ss. 3, 7, 11(2), 13, 36(1) & 46--S.R.O. No. 535(I)/2008 dated 11-6-2008--Assessment of tax--Determination of tax liability-- Recovery of tax not levied or short levied--Case as made out by the department was that registered person/company made in-house production of sulphuric acid, which was manufactured by a chemical reaction of sulphur and rock phosphate--Since the end product i.e. GSSP fertilizer was exempt from tax, department taxed the in-house production of sulphuric acid being supply/taxable activities--Assertion of the registered person was that Assessing Authority was not justified to levy sales tax by not appreciating the fact that the company had been paying sales tax on the purchase of sulphur from the market and input tax on sulphur used in the manufacturing of sulphuric acid for the production of GSSP (Fertilizer) was not being claimed as refundable and that since the sulphuric acid manufactured in-house with sulphur was being used for the production of sulphuric acid, it could not be construed as an intermediary product warranting payment of sales tax side by side with input tax which was not claimed--Validity--In the present case, no sale of goods was made, which would attract the provisions of Sales Tax Act, 1990, as production of sulphuric acid, remained the continuous process to produce the end product i.e. GSSP Fertilizer, which was exempt from levy of Sales Tax in terms of SRO A'o.535(I)/2008 dated 11-6-2008--No taxable activity was involved in the present case which attracted the provisions of Sales Tax Act, 1990 to levy Sales Tax upon the registered person--Impugned order passed by Appellate Authority, was vacated and that of the Assessing Authority was cancelled. 2012 PTD (Trib.) 1316 ref. ORDER CH. ANWAAR UL HAQ (JUDICIAL MEMBER).--The titled Sales Tax appeal, has been preferred at the instance of registered person calling in question the impugned order No.3 dated 30-11-2011 passed by the learned CIR (Appeals-II), Lahore. 2. The relevant facts for disposal of present appeal are that during the course of audit of sales tax record of the appellant in respect of the tax periods July 2008 to June 2009, it…

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