Law: Sales Tax Act, 1990

Section: 2(5AB),2(25),3(1)(a),7,8,14,33(1),33(2), 33(5),33(8),33(11c),33(16)and34(1)(c)

Law: Sales Tax Rules, 2006

Section: 4,6

ORDER CH. SHAHID IQBAL DHILLON (JUDICIAL MEMBER),.The titled appeal preferred at the instance of the registered person is directed against the order-in-appeal No.27/A-ll/2015 dated 23.05.2015 passed by the learned CIR (Appeals-ll), Lahore. 2. Facts of the case, in brief, are that on receipt of an information that during the tax years 2011 to 2013 the appellant had made huge sales but did not offer itself for Sales Tax Registration Scrutiny of the record was made and observed that for the said tax years the appellant filed income tax returns declaring net sales at Rs.69,92,462/-, Rs.68,40,000/- and Rs.63,25,000/-/-. Since the declared sales were exceeding Rs.5(M) it was alleged that the appellant was liable to be registered in terms of Section 2(5AB) of the Sales Tax Act, 1990 read with Rule 4 & 6 of Chapter ( of Sales Tax Rules, 2006, introduced vide SRO.555(I)/2006 dated 05.06.2006 and pay sales tax @ 16% and 17% on its supplies. Therefore, a show cause notice was issued confronting the appellant that as why sales tax amounting to Rs.32,95,118/- alongwith default surcharge and penalties may not be recovered from him. Initially the appellant remained absent but in the end filed reply which was found unsatisfactory and consequently the Order-in-Original No.37/2015 dated 10.03.2015 was passed directing the appellant to deposit the principal amount of sales tax amounting to Rs.32,95,118/- alongwith default surcharge besides penalties u/s 33(1),33(2),33(5), 33(8), 33(11c), 33(16) and 34(1)(c) of the Sales Tax Act, 1990. Being aggrieved, the appellant challenged the action of the Adjudicating Officer in first appeal both on legal as well as factual grounds but the learned CIR(A) upheld the treatment. Hence this appeal before this forum. 3. The learned AR has vehemently assailed the impugned order as unjustified and arbitrary. Firstly, he argued that the tax liability has been created without fulfilling the requirements of law especially when the Adjudicating Officer had failed to serve notice upon the registered person under Rule 6 Chapter I of the Sales Tax Rules, 2006 notified vide SR0. 555(1)/2006 dated 05.06.2006 read with Section 14 of the Sales Tax Act…

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