Law: Sales Tax Act, 1990

Section: 1,2,2A,3,3(1)(a),(3(2)(b),3(6),4,4(c),5, 6,7,7(1),8,8(1)(b),8(1)(f),8(1)(g),10,11 (1),11(2),13,17,22,23,25,25(2),26,33(5), 34,38,72B

Law: Federal Excise Rules, 2005

Section: 43A

Law: Constitution of Pakistan, 1973

Section: 10A,19,23,24

Law: Federal Excise Act, 2005

Section: 19

THIS ORDER PASSED BY: QAMAR-UL-HAQ BHATTI (JUDICIAL MEMBER):---.--- Vide this appeal has been preferred at the instance of the appellant- registered person calling in question the Order-in-Appeal No 07- A-II/2017 dated 04.05.2017 passed by the learned Commissioner Inland Revenue (Appeals-II), Lahore. 2. Both the learned representatives appearing at the bar have been heard and the relevant available records perused. 3. Brief facts of the case are that the investigation/ inquiry of sales tax affairs of M/s. SRC (Pvt) Ltd bearing Sales Tax Registration No.0217340200155 for the period from July-201 1 to April-2015 was initiated /approved by the Commissioner Inland Revenue Zone-VII, RTO-II, Lahore dated 11.05.2015 Accordingly, the concerned authorities during the course of audit/inquiry/investigation of the registered person observed the following discrepancies such as:- a. Illegal claiming the benefit of reduced rate under SRO 283(I)/2011 dated 01.04.2011, SRO 1058(I)/2011 dated 23.11.290111 and 1125(I)/2011 dated 31.12.2011. b. Illegal claim of zero rating against electricity bills by misusing of SRO 1125(I)/2011 31.12.2011. c. Illegal claim of zero rating/reduced rate at the time of imports against bill of entries by misusing of SRO 1125(I)/2011. d. Illegal charging of sales tax zero rated/reduced rate against local supply, un registered buyers not belong to five sectors. e. Illegal charging of sales tax zero rated/reduced rate against local supply, buyers status inactive/null filers/non-filers. f. Suppression of Sales(Output tax discrepancies) by not declaring sales in the sales tax returns. g. Inadmissible input tax claimed against items not utilized in taxable supplies. h. Federal Excise Duty on Franchise/Technical Fee. 4. Based on the above irregularities/omissions, the appellant was charged with deliberate violations of provisions of section 3, 4, 6, 7, 8, 22,23 and 26, of the Sales Tax Act, 1990 alongwith various SRO i.e. SRO 283(I)/2011 dated 01.04.2011, SRO 1058(I)/2011 dated 23 11 2011 and 1125(I)/2011 dated 31.12.2011 and issued show cause notice bearing C.No.1167 dated 24.05.2016. In response thereto, the appellant-registered person tendered his reply…