Law: Sales Tax Act, 1990

Section: 2(21a),8(2),11(2),3(1),33(5),33(19)

Law: Constitution of Pakistan, 1973

Section: 77

Law: Federal Excise Act, 2005

Section: 3,14

ORDER M.M. AKRAM (Judicial Member):---.--- The titled appeal has been filed by the appellant/registered person against an Order No.16/2019 dated 11.10.2019 passed by the learned CIR (Appeals-I), Islamabad for the Tax Periods July, 2015 to June, 2015 on the grounds as set forth in the memo of appeal. 2. Briefly facts culled out from the record are that the appellant is engaged in telecommunication services and the case of the appellant was selected for audit by the Federal Board of Revenue (FBR) under section 72B of the Sales Tax Act, 1990 ("the Act") for the tax periods July 2015 to June 2016. During the audit proceedings, certain discrepancies emerged from the record. In consequence thereof, a show cause notice No.919 dated 26.04.2019 was issued under section 11(2) of the Act The appellant confronted with the following issues: - (i) Inadmissible input tax on account of non-apportionment of input tax; (ii) Non-payment of sales tax on disposal of fixed assets; (iii) Inadmissible input tax and (iv) Late filling of sales tax returns and late payment of sales tax. The appellant submitted its reply which was considered and found unsatisfactory by the Assessing Officer. The contravention proceedings so initiated culminated in passing of the order-in-original No.51//89 dated 26.06.2019 whereby default of an amount of sales tax of Rs. 146,731,913/- was established and held to be recoverable from the appellant registered person along with default surcharge (to be calculated at the time of payment) under section 34 and penalty of Rs.7,399,381/- under section 33(1), 33(5) and 33(19) of the Act, The registered person being aggrieved, filed an appeal before the learned CIR (Appeals-I), Islamabad who decided the case vide Order No.16/2019 dated 11.10.2019 whereby except issue No.(iii) all the issues were confirmed. Still feeling aggrieved, the appellant has now come up before this Tribunal and has assailed the impugned order on a number of grounds. 3. This case came up for hearing on 21.01.2021. At the very outset, the learned AR of the appellant contended on the issue of inadmissible input tax on account of non- apportionment of input tax that the services of the appellant…

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