Law: Sales Tax Act, 1990

Section: 3,7,8a,47,73

Sales Tax Act (VII of 1990)--.-- --.--Ss.73, 3, 8A, 7 & 47--.--Sales tax liability--.--Determination of--.--Input tax adjustment--.--Sales tax transactions not admissible--.--Documents to establish genuineness of transactions under S. 73 of the Sales Tax Act, 1990--.--Blacklisted suppliers--.--Blacklisting of suppliers subsequent to transaction with taxpayer--.--Effect and scope--.--Proceedings against taxpayer were initiated on ground that it had illegally claimed and adjusted input tax against invoices issued by blacklisted suppliers and said invoices were found to be fake and bogus--.--Contention of taxpayer, inter alia, was that it had provided documentary evidence to establish genuineness of said transactions--.--Validity--.--Validly issued invoices by a supplier when such supplier was active and registered would not be affected by subsequent blacklisting or suspension of said supplier unless such invoices were specifically declared fake through a speaking order after hearing of parties and if the same had direct nexus with subsequent blacklisting--.--During period under consideration, in the present case, suppliers of the taxpayer were fully operative and impugned invoices had no direct nexus with their subsequent blacklisting, therefore refund/adjustment could not be denied to the taxpayer for the said invoices--.--Taxpayer had taken a consistent stand before all forums that it had genuinely purchased all goods and produced copies of cheques along with Bank statements to establish that provisions of S. 73 of the Sales Tax Act, 1990 had been complied with and it produced sufficient material on record to rebut that allegation that the impugned invoices were not mere paper transactions, which documents of the taxpayer were not considered by the Department--.--High Court remanded the matter to Adjudicating Officer to decide the matter afresh after taking into account the documentary evidence produced by the taxpayer through a speaking order--.--Reference was answered, accordingly. Commissioner Inland Revenue v. Tariq Ply Pack (Pvt.) Ltd. 2015 PTD 2256 and Commissioner Inland Revenue v. M/S. Amtex Ltd. 2016 PTD 467 rel. THIS JUDGMENT DELIVERED BY: TARIQ…

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