Law: Sales Tax Act, 1990

Section: 2(37),7(2)(ii),11,21,21(2)

Law: Qanun-e-Shahadat (10 of 1984)

Section: 117,118

Law: Sales Tax Rules, 2006

Section: 12,12(a)

SALES TAX ACT, 1990 (VII OF 1990) Sections: 2(37), 7(2)(ii), 11, 21, 21(2) - Sales Tax Rules, 2006, Rule: 12, 12(a) - Qanoon-e-Shahadat Order, 1984, Article 117, 118 - Constitution of Pakistan, 1973, Article 18 - General Clauses Act, 1897, Section 24A - SRO 1125(I)/2011 - Assessment of tax and recovery of tax not levied or short levied or erroneously refunded - Definitions - Determination of tax liability - De-registration, black-listing and suspension of registration - Show Cause Notice - Opportunity of being heard not provided before suspension of registration - Allegation that appellant is involved in issuing fake/flying invoices - Challenge to - FACTS Brief facts of the case are that the appellant is duly registered under Sales Tax Act vide STRN 17-00-9606-001-82. The Respondent served letter dated number 938 dated 01.11.2019 alleging that the appellant is involved in misuse of SRO 1125(I)/2011 and in the same letter at para 07 it was stated that the letter be treated as an act of personal interaction/intimation of 24 hours before suspension of the STRN in terms of directions of FBR. After expiry of 24 hours the appellant Sales Tax Registration was suspended vide SUSPENSION ORDER bearing number 1042 dated 08.11.2019 without providing any opportunity of being heard. The suspension order was followed by another show cause notice for BLACKLISTING under section 21(2) of Sales Tax Act bearing number 1048 dated 11.11.2019 alleging that the appellant is involved in issuing fake/flying invoices and the sales have been made to suspended/blacklisted parties. The show cause notice was responded by the AR of the appellant however the same was not found convincing and without giving any rebuttal to the reply and ignoring the case laws passed the order in appeal. ARGUMENTS The learned AR argued that the order in appeal is ab initio illegal as the appellant was suspended in violation of the decisions delivered by the Hon’ble Sind and Lahore High Court. Any suspension without providing opportunity of being heard is not only illegal but violate the principle of natural justice. If the initial action is illegal subsequent action taken will also be illegal and of no legal…

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