Law: Sales Tax Act, 1990

Section: 3,6,7,11(3),26

Law: Federal Excise Rules, 2005

Section: 62,63,64

Law: Federal Excise Act, 2005

Section: 4,14(1),14(3),17,18

ORDER: MIAN ABDUL BASIT, JUDICIAL MEMBER:---.--- Titled appeal was filed by the department against the Sales Tax Order-In-Appeal No. 186/2017-18 dated 30-05-2018 passed by the learned Commissioner IR (Appeals-III) Rawalpindi, wherein appeal of the Registered Person was accepted. The appeal of the appellant department was dismissed vide order dated 18-02-2019 passed by this tribunal. The department being dissatisfied from the order dated 18-02-2019 by this tribunal filed a sales tax reference No 09/ 2019 before the honorable High Court. The Honorable High Court decided the tax reference vide order dated 10-11-2020 and observed that the stances of respective parties was not properly appreciated by this tribunal; and therefore, on the strength of law laid down by the August Supreme Court of Pakistan in the case of Commissioner of Income Tax, Companies Zone-II, Karachi VS Sindh Engineering (Pvt) Limited Karachi (2002 SCMR 527) remanded the case back to this tribunal for decision a fresh after hearing all the three parties i.e. the Central Tobacco, Imperial Cigarette and the tax department. We, therefore; in the light of order of the honorable High Court, allow the Imperial Cigarette to attend the court proceedings and put forth its arguments regarding the goods in custody of the department. 2. Briefly stated facts as gathered from the appeal file of the instant case are that it was reported to the department by the Intelligence, Investigation and Prosecution (II&P) Cell RTO Rawalpindi that M/s Central Tobacco Company involved in manufacturing and sale of non-duty paid cigarettes. Consequently, a team was deputed who visited / conducted a raid at the business premises / store of the company located at Chak Bazeed Chowk, Rawalpindi Road Chakwal, upon which a report was prepared that a huge quantity of 266,747 Kgs of unmanufactured tobacco had found in the store of respondent Company. A dismantled part of PPD machinery and Boiler/Steamer were also found in non-operational condition in the raided premises. The Registered Person had been consecutive non filer for sales tax and Federal Excise returns as well as Income Tax returns for the last five years and was therefore…

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