Law: Sales Tax Act, 1990

Section: 2(37),11,11(2),11(3),21(2)

Law: Sales Tax Rules, 2006

Section: 12

(a) Sales Tax Act (VII of 1990)--- ----Ss. 2(37), 11 & 21(2)---Sales Tax Rules, 2006, R. 12---Notification SRO No.555(I)/2006 dated 05-06-2006---Tax fraud---Coercive recovery of tax---Proceedings for blacklisting---Taxpayer was issued show-cause notice for tax deficit---During pendency of proceedings on show cause, authorities issued warning to suspend registration of taxpayer and taxpayer paid sum of Rs. 4.8 million as recovered amount---Validity---Taxpayer had neither admitted allegation of suppression of sales nor liability of sales tax whereas an amount of sales tax was coercively recovered by authorities which could not be equated with admission of charges and allegations---Show-cause notice issued for suspension of registration could also not be construed as confession of taxpayer as same was deposited ostensibly under threat of suspension of his registration and criminal prosecution apprehending physical arrest---Such mode of recovery by revenue department, without recourse to relevant provisions of Sales Tax Act, 1990 could only be termed as extortion---Any person depositing amount under any fear, stress or duress could not reasonably be expected its admission by him in event of recovery of tax unlike perpetual tax evader and habitual actor of fiscal crime---Neither any show-cause notice for assessment of sales tax or as case may be recovery of short levied or non-levied of sales tax under Ss.11(2) & 11(3) of Sales Tax Act, 1990 was issued nor any order adjudging liability of sales tax was passed---Whole exercise of recovery of sales tax was carried out without adhering to due process of adjudication as provided under law---Appellate Tribunal Inland Revenue set aside show-cause notice and order passed by Commissioner Inland Revenue as being illegal and void ab initio---Appellate Tribunal Inland Revenue also declared recovery of sales tax as illegal and without lawful jurisdiction---Appeal was allowed in circumstances. (b) Sales Tax Act (VII of 1990)--- ----S. 11---Coercive recovery---Administration of justice---Recovery of taxes from a taxpayer without due process of adjudication of case, which is his basic, fundamental, constitutional and…

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