Law: Sales Tax Act, 1990

Section: 7,8(1)(ca),11(3),23,73

Sales Tax Act (VII of 1990)--- ----Ss. 11(3) & 73---Adjustment of input tax---Recovery of already adjusted amount of sales tax---Scrutiny of sales tax returns, revealed that taxpayer had purportedly adjusted input tax for relevant period on the strength of invoices issued by the supplier, whose registration was allegedly suspended subsequently---Adjudication proceedings were initiated by the Taxation Officer by way of issuance of show-cause notice to taxpayer for recovery of already adjusted amount of sales tax directing him to pay back the amount of tax under S.11(3) of the Sales Tax Act, 1990---Explanation tendered by the taxpayer was treated unsatisfactory---Adjudication proceedings culminated in passing of order which was challenged before Commissioner Inland Revenue (Appeals), who also upheld the liability against the taxpayer---Validity---Taxpayer had duly produced all the relevant record, including purchase invoices, onward gate passes, sales tax returns and summary statements of the supplier, showing genuineness of the alleged transactions, but same were not considered by both the authorities below---All the transactions made with the alleged supplier being below fifty thousand rupees, provisions of S.73 of the Sales Tax Act, 1990, could not be applied in the case and the taxpayer could not be charged for any violation in that regard---Suspension order of supplier not converted into blacklisting order within 90 days, had become illegal and ab initio void due to afflux of time---Recovery of sales tax against the said invoices being illegal and unlawful therefore, all the subsequent proceedings carried out on its basis, were also void ab initio---Impugned show-cause notice as well as consequent orders of both the authorities below were set aside. THIS ORDER PASSED BY: CH. SHAHID IQBAL DHILLON (JUDICIAL MEMBER):---.--- The instant appeal has been filed against Order-in-Appeal No. 195/2015 dated 16-04-2015 passed by the learned CIR(A), Faisalabad whereby, he while maintaining the Order-in-Original No. 10/2014 dated 30-10-2014, dismissed the appeal. 2. Succinctly stated, the facts of the case are that during scrutiny of sales tax returns, it has been…

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