Law: Sales Tax Act, 1990

Section: 3(1),45-B,45B(3)

Jurisdiction of Commissioner (Appeals) Under Section 45B(3) of the Sales Tax Act, 1990The case arises from a sales tax demand of Rs. 99,410,913/- issued by the assessing officer against the appellant for the tax period July 2016 to June 2017. The demand was based on alleged discrepancies in the appellant's taxable supplies and non-deposit of sales tax. The assessing officer relied on Annexure-F and certain assumptions regarding discrepancies between sales tax and income tax declarations.The appellant challenged this demand before the Commissioner Inland Revenue (Appeals-VI), Karachi, who annulled the assessment on the merits but improperly remanded the case to the assessing officer for de novo consideration. The appellant then filed the present appeal, contesting the remand as being beyond the jurisdiction of the Commissioner (Appeals) under Section 45B(3) of the Sales Tax Act, 1990.The Tribunal examined the following legal and factual aspects:Section 45B(3) of the Sales Tax Act, 1990 explicitly states:"In deciding an appeal, the Commissioner of Inland Revenue (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration."The Tribunal concluded that remanding the case violates this provision and legislative intent, which aims to avoid protracted litigation by empowering the Commissioner (Appeals) to conclude matters directly.Judicial Precedent:Commissioner Inland Revenue v. M/s Supreme Tech International (STR No. 12/2012): The Lahore High Court emphasized that the Commissioner (Appeals) lacks the power to remand cases for de novo consideration and must use the authority to conduct further inquiries at the appellate stage.2004 PTD 368 – Al-Hilal Motors Stores: Findings based on presumptions or assumptions lack legal sustainability.2023 PTD 467: Reliance on Annexure-F for determining liability requires substantive and clear evidence.FBR Circular No. 04 of 2019: Clarifies that entries in Annexure-F primarily relate to value-added tax for commercial importers and do not directly determine sales tax liability.Merit of the Assessment:The assessing officer relied on presumptions and Annexure-F, which…

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