Law: Sales Tax Act, 1990

Section: 3(7),6,7,11,11(2),11(4),11(4A),26,33,34, 35(5)

Law: General Clauses Act, 1897

Section: 17,18

SALES TAX ACT, 1990 (VII OF 1990) Sections: 3(7), 6, 7, 11, 11(2), 11(4), 34 & 35(5) - General Clauses Act, 1897, Sections: 17 & 18 - Assessment of tax and recovery of tax not levied or short levied or erroneously refunded - Appellant is exporter - Made purchases from unregistered person - Failure to deduct and deposit full amount of withholding tax - Order passed for the recovery of short payment of withholding tax along with default surcharge u/s 34 and imposition u/s 33(5) equivalent @ 5% of the amount of tax involved by the ACIR - Appeal dismissed by CIR(A)- Validity - FACTS Brief facts of the case as transpired from the record are that the taxpayer being an exporter was liable to withhold sales tax at a specified rate. The sales tax data available in FBR e-portal, declared by the taxpayer for the tax period July 2013 to June 2015 was scrutinized which revealed that the appellant made purchases from unregistered person but failed to deduct and deposit full amount of withholding sales tax in respect of sales tax return. Therefore, recovery order of short payment of withholding tax amounting to Rs.5,002,873 which is recoverable u/s. 11(4) along with default surcharge u/s. 34 (to be calculated at the time of actual payment) also impose equivalent @ 5% of the amount tax involved under section 33(5) ibid for the violation of section 3(7), 6, 7, 26 of the Sales Tax Act, 1990. ARGUMENTS On the date of hearing, Mr. Adnan Siddiqui, Advocate appeared on behalf of the appellant/taxpayer while Dr. Latif appeared on behalf of respondent/department as D.R. During proceedings before this Court, the learned counsel for the taxpayer argued that the learned Commissioner (Appeals) has erred by upholding the order on the ground of non-prosecution. Commissioner should have decided the appeal on merit considering the grounds of appeal submitted by the Appellant. Learned counsel for the taxpayer further argued that the Commissioner Appeal III had erred by dismissing appeal on the ground that counsel of the taxpayer did not respond to the notice issued by the Commissioner appeal. The fact of the case is that counsel of the taxpayer had shifted from said office to another…

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