Law: Sales Tax Act, 1990

Section: 2(37),8(1)(ca),21(3),47

Law: Sales Tax Rules, 2006

Section: 12(a)(v),12(5)

(a) Sales Tax Act (VII of 1990)-- --Ss. 21(3), 8(1)(ca) & 2(37)--Sales Tax Rules, 2006, R. 12(a)(v)--- Tax credit not allowed--Blacklisting and suspension of registration registered person--Tax fraud--Burden of proof--Scope--Registered person was alleged to have received refund of input tax against the sales tax invoices issued by suspended/blacklisted units Validity Taxation officer, while invoking the provisions of S. 21(3) of Sales Tax Act, 1990, had to ascertain the fact that the invoices were issued during suspended or blacklisted period and in case invoices were issued prior to blacklisting, the cause or reason for blacklisting had some nexus with the invoices--Bottom line was that tax was not paid or deposited against the invoices--To prove such fact, initial burden was upon the department, however, in accordance with the provisions of S. 2(37) of the Sales Tax Act, 1990 such burden could be shifted upon the registered person in cases of tax fraud--Taxation officer had not established that the invoices were either fake or flying or the claimed tax was not deposited in the Government Exchequer Reference application was decided against the department accordingly. Commissioner Inland Revenue v. Messrs Ali Hassan Metal Work 2018 PTD 108 foll. (b) Sales Tax Act (VII of 1990)-- --Ss. 21(3) & 8(1)(ca)--Sales Tax Rules, 2006, R.12(a)(v)--Tax credit not allowed--Blacklisting and suspension of registration of registered person--Burden of proof--Scope--Initial burden lies on the department to prove that invoices have been issued during suspended or blacklisted period and in case invoices are not issued during the period of blacklisting, the cause or reason for blacklisting has some nexus with the invoices. Commissioner Inland Revenue v. Messrs Ali Hassan Metal Work 2018 PTD 108 rel. (c) Sales Tax Act (VII of 1990)-- --Ss. 21(3) & 8(1)(ca)--Tax credit not allowed--Blacklisting and suspension of registration--Scope--Intention of Legislature as discernible from the provisions of S. 21(3) read with S. 8(1l)(ca), of the Sales Tax Act, 1990 is that reclaim (refund) or adjustment of input tax (tax credit) should not be allowed for an invoice against which…

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