Law: Sales Tax Act, 1990

Section: 3,6,11,11(2),22,23,25,26,33,34(1)

Law: Constitution of Pakistan, 1973

Section: 189,201

Law: Sales Tax Special Procedure (Withholding) Rules, 2007

Section: 13,14(1)

SALES TAX ACT, 1990 (VII OF 1990) Sections: 3, 6, 11, 11(2), 22, 23, 25, 26, 33 34(1) - Assessment of tax and recovery of tax not levied or short levied or erroneously refunded Show Cause Notice - Selection of case for audit - Order-in-original passed by DCIR charging tax along with default surcharge and penalty - DCIR observed that Sales Tax paid for tax period from January, 2012 to June, 2014 viz-a-viz accretion in liability do not match and reveals staggering difference - The total Sales Tax paid after adjusting output tax from input tax is nil. Contention of adjusting entry contra entry and no Sales Tax payable merely mentioning in audited statements is not tenable as per substantive law and accounting principles, thus tax liability to the tune of Rs. 12,246,119,442/- is payable - CIR (A) upheld impugned order and dismissed appeal - In the grounds of appeal before Appellate Tribunal appellant emphasized that no counter affidavit has been filed, therefore, assessment order and order - in - appeal are not sustainable as appellant has established that Rs. 12,246 Billion relate to Sales Tax which appellant has to receive from its customers. Resultantly, subject case is unlawfully based on presumptions, intendment and misinterpreted entries in accounts - AR filed written arguments in which it was stated that averments made in Affidavit have not been disputed by counter affidavit. Show Cause Notice was issued wrongly attributing figures to sales tax not realized from customers and hence not deposited in slate exchequer blit not paid by electricity consumers in column "Sales tax not yet realized" has been prescribed by WAPDA and is being followed in all discos. The Company records payment/adjustment of output tax against input tax separately under account head "Advance general sales tax paid" creating asset instead of reducing liability by debiting "Sales tax not yet realized". Appellant has established by detailed affidavit, statements, export evidence and record as to how Rs. 12,246 Billions are linked with sales tax deposited in state treasury, but not recovered from consumer to whom it was billed. In such circumstances burden of proof is on Deptt, to prove…