Law: Punjab Sales Tax on Services Act, 2012

Section: 3,10,10(4),11,48(2),49,52(2),52(2)(a)

ORDER: APPEAL COMMISSIONER 1. Brief facts of the case are that learned Additional Commissioner, PRA, Lahore (hence referred to as 'the assessing officer') issued a show cause notice dated 03-11-2015 to M/s ADG LDI (Private) Limited (hence referred to as 'the appellant') in terms of section 52(2) of the Punjab Sales Tax on Services Act, 2012. According to the show cause notice, the appellant had claimed input tax on the invoices issued by M/s Pakistan Telecommunication Company Limited (PTCL) during the tax period August, 2102 to September, 2015. Scrutiny of the returns filed for the tax periods under review revealed that the appellant claimed input tax amounting of Rs. 8,979,712/- on the strength of invoices issued by PTCL vide Annexure 'A' of the monthly returns. The claiming of input tax on such invoices and taking credit of the same amount was held inadmissible being unverified under Punjab Sales Tax on Services (Adjustment of Tax) Rules, 2012. 2. The show cause notice was issued under section 52(2) of the Punjab Sales Tax on Services Act, 2012 (hence referred to as 'the Act of 2012') for violation of section 3, 10 and 11 of the Act of 2012 read with Punjab Sales Tax on Services (Adjustment of Tax) Rules, 2012 for an amount of Rs. 8,979,712/-. The appellant did not appear or submit any explanation for claiming inadmissible input tax. The learned assessing officer proceeded ex- parte and concluded the proceedings vide order-in-original dated 16-12-2015 holding the appellant responsible to pay Punjab sales tax amounting to Rs. 8,979,712/- under section 52(2)(a) of the Act of 2012. The appellant filed appeal before learned Commissioner (Appeals), PRA, who vide order dated 29-02-2016 remanded back the case to the assessing officer to pass a fresh order after hearing the appellant and taking in account all the documentary evidence in the case. 3. In the second round of assessment, the learned assessing officer provided several opportunities to the appellant for filing reply. In response to the show cause notice the appellant finally filed a reply dated 19-05-2016 pleading that M/s PTCL was paid FED on telecom services which was adjustable as sales tax under the…

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