Law: Sales Tax Act, 1990

Section: 3,7,8(1)(c),8(1)(ca),21(3),26,36

Law: Sales Tax Special Procedure Rules, 2007

Section: 12(5)

Law: Constitution of Pakistan, 1973

Section: 23,24

THIS ORDER PASSED BY: NAZIR AHMAD, CHAIRMAN:---.--- The above captioned appeal has been filed by the registered person against the Order-in-Appeal No.37/2015 dated 08.06.2015 passed by the learned CIR(Appeals), Sialkot. Taxpayer has agitated the grounds as set forth in the memo of appeal. Brief facts of the case are that the registered person claimed/adjusted input tax amounting to Rs.59,27,042/- on the basis of invoices issued by the sales tax blacklisted persons. On the basis of above, the registered person was served with show cause notice by the department. The Taxation officer passed the order in original whereby creating demand of Rs.5,549,132/- alongwith penalty of Rs.443,931/- and default surcharge (to be calculated at the time of payment). Being aggrieved from the above order, the registered person filed appeal before learned CIR(A) Sialkot, who vide the impugned order confirmed the Order-in-Original on the issue of input tax adjustment. Against this treatment, the registered person filed further appeal before this forum. At the very outset, the learned counsel has objected on the show cause notice and submits that the show cause notice issued by the department is defective since the tax authority has just mentioned sections without specifically mentioning violation of sales tax law and procedures. Elaborating his viewpoint he submits just mentioning of sections in the show cause notice does not solve the purpose. The tax authority should specifically mention and confront the violation of law and procedure committed by the appellant in the show cause notice. Learned counsel further submits that the order passed by the revenue authority and confirmed by the learned first appellate authority is contrary to the law and facts of the case. Explaining his viewpoint he submits that show cause notice dated 22.11.2010 in the case in hand is barred by time in respect of returns filed before 22.11.2010. He refers to the provision of section 36 of the Sales Tax Act, 1990 as per which the limitation for initiating previous period is 3 years where allegation of fraud is not established. He further submits that since allegation of collusion and fraud has not been…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492