Law: Sales Tax Act, 1990

Section: 11(2),33,34

ORDER Ch. Shahid Iqbal Dhillon (Judicial Member),.. The appellant is a fixed line telecommunication operator engaged in a wide spectrum of telecommunication services. Brief history of the case is that Additional Commissioner Inland Revenue, Audit-ll, Large Taxpayers' Unit, Islamabad issued notice under Section 11(2) of the Sales Tax Act, 1990 to the appellant alleging non-payment of sales tax amounting to Rs 21,753,880/- on disposal of assets as disclosed in appellant's cash flow statement for the year ended 31 December 2012. The written replies and evidence submitted by the appellant were only partially accepted and the learned Additional Commissioner proceeded to assess sales tax demand of Rs 18,122,594 vide Order-in-Original # 17/102 dated 09.04.2015. Being aggrieved the appellant filed an appeal before the learned Commissioner Inland Revenue (Appeals-I), Islamabad who vide Order-in-Appeal # 244/2015 dated 06.07.2015 upheld the treatment meted out at the assessment stage. The appellant is therefore in appeal before this Tribunal against Order-in-Appeal # 244/2015 dated 06.07.2015. 2. The grounds of appeal before us as submitted by the appellant are being reproduced below: 1. "That the Order in-Appeal No. 244/2015 dated 6th July 2015 (the ONA) is bad in law and against the facts of the case. 2. That notwithstanding all the grounds below the Commissioner Appeals-I, Islamabad (the CIRA) completely ignored the fact that Section 11(2) of the Sales Tax Act, 1990 was illegally invoked merely on the basis of the assumption that sales tax was not charged on the amount of disposal proceeds declared in financial statements of the appellant. 3. That the CIRA illegally upheld the allegation that the appellant had failed to pay sales tax of Rs 16.191,794 by not comprehending the fact that the this sum was received within the show-cause period (July 2012 to December 2012) but sales against these were made prior to July 2012 and therefore the said sum was very much within the scope of the show-cause notice. 4. That the CIRA illegally upheld charging of sales tax of Rs 1,015,094 on vehicles (when the same is not chargeable being an item falling under Chapter 87 of the…

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