Law: Sales Tax Act, 1990

Section: 2(9),3,6,7,8(1)(ca),8A,11,13,22,23,25,26 ,33(8),73

THIS ORDER PASSED BY: SHAHID IQBAL DHIIION (JUDICIAL MEMBER):---.---- The instant appeal has been filed on behalf of the taxpayer against order-in-appeal No. 48 A-II/2015 dated 29.07.16 passed by the CIR (Appeals), Lahore. 2. Facts briefly sated are that sales tax audit of the appellant for the period July, 2012 to June, 2013 was conducted and following charges were leveled against the appellant in the show cause notice issued by the learned DCIR, RTO, Lahore:- (i) Non payment of Sales Tax: It was observed that the appellant had shown sales and its buyers had not shown the same in their tax returns therefore, the cross-matching of the sales claimed by the appellant has not been verified in the manner as required under the law and shown the discrepancies of CREST amounting to Rs. 70,656,577/- involving sales tax amounting to 3,532,829/-. Thus the appellant violated the provisions of section 3, 6, 7, 8(1)(ca), 8A, 22, 23 and 26 of the Act read with SRO 1125(I)/2011 dated 31.12.2011. Accordingly sales tax amounting to Rs. 3,532,829 was found recoverable along with default surcharge and penalty. (ii) Non payment of Sales Tax (Sales): During the scrutiny of the record as provided by the appellant, it was observed that the appellant had made local supplies amounting to Rs. 621,306,414/- and the appellant has failed to provide the payment proofs in compliance with the provisions of section 73 of the Act. It was further observed that the appellant have declared zero-rated supplies to their buyers during the audit period under SRO 1125(I)/2011 dated 31.12.2011 for which no payments proofs have been provided hence the appellant mis-use the zero-rating facility as was provided under the said SRO. Accordingly sales tax amounting to Rs. 99,409,026/- was found recoverable along with default surcharge and penalty under section 34 and 33 of the Act. (ii) Non-Compliance of Section 73 (Purchase): During the scrutiny of the record as provided by the appellant, it was observed that the appellant had made local supplies amounting to Rs. 503,865,053/- and the appellant has failed to provide the payment proofs in compliance with the provisions of section 73 of the Act. It was further…

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