| Citation(s) |
|---|
| 2026 SLG 335 2026 SLD 335 |
Appellate Tribunal Inland Revenue
STA No.1640/LB/2024 Tax Period July 2023 to September 2023, STA No.1647/LB/2024 Tax Period May 2023 to July 2023,, STA No.1639/LB/2024 Tax Period March 2023 to July 2023
Presented By: (NASIR MAHMUD) MEMBER (RAO M. NASIR JAMIL ) MEMBER
Appellant in all appeals By: Mr. Omer Wajid, FCA
Respondent in all appeals By: Ms. Hareem Fatima,DR and Mr. Arslan Khan Tanoli DCIR Dates of Hearing: 03-07-2025 Date of Order: 17-07-2025
STA No.1640/LB/2024 Tax Period July 2023 to September 2023, STA No.1647/LB/2024 Tax Period May 2023 to July 2023,, STA No.1639/LB/2024 Tax Period March 2023 to July 2023
Presented By: (NASIR MAHMUD) MEMBER (RAO M. NASIR JAMIL ) MEMBER
Appellant in all appeals By: Mr. Omer Wajid, FCA
Respondent in all appeals By: Ms. Hareem Fatima,DR and Mr. Arslan Khan Tanoli DCIR Dates of Hearing: 03-07-2025 Date of Order: 17-07-2025
M/s D G Khan Cement Factory Limited, Lahore ….Appellant V e r s u s The Commissioner Inland Revenue, LTO, Lahore. ….Respondent
Law: Sales Tax Act, 1990
Section: 11, 11E , 6, 7, 8(1)(a), 8(1)(ca), 8(1)(d), 8A, 22, 23, 26 , 73
O r d e r Nasir Mahmud (Member) : The subject appeals impugn the following Assessment orders passed by the learned Deputy Commissioner Inland Revenue, Unit – 15, Zone – III, Large Taxpayers Office, Lahore [‘Assessing officer’ hereinafter] determining liability under the Sales Tax Act, 1990 [‘Act’ hereinafter] in consequence of proceedings concluded under section 11/11E of the Act for tax periods July, 2022 through September, 2023 (STA No.1640/LB/2024); March 2023 to July 2023 (STA No.1639/LB/2024); and May 2023 to July, 2023 (STA No.1647/LB/2024). Sr. No. STA. No. Supplier Name Order-In-Original (ONO) No. Principal Default Penalty Rupees Rupees 1 STA No. 1639/LB/24 Amon Enterprises (SMC-Pvt) Ltd 03/2024 dated 10.07.2024 69,868,224 69,868,224 2 STA No. 1640/LB/24 Firmament Trading (SMC-Pvt) Ltd 26/2024 dated 24.06.2024 71,134,271 71,134,271 3 STA No. 1647/LB/24 (i) Growmore (SMC-Pvt) Ltd. (ii) Amir Hameed (iii) Azhar Hameed (iv) Athar Hameed (v) Khawaja Rehan Khurshid Saighal (vi) Mashal Import-Export Company (SMC-Pvt) Ltd 24/2024 dated 22.06.2024 368,312,170 368,312,170 509,314,665 509,314,665 2. The brief facts leading to the present appeals are that the appellant was issued multiple show cause notices in terms of section 11 of the Act through which it was alleged that the appellant had claimed fake input sales tax, aggregating to Rs. 509,314,665/-, for multiple tax periods from July 2022 through September 2023 (STA No.1640/LB/2024); March 2023 to July 2023 (STA No.1639/LB/2024); and May 2023 to July, 2023 (STA No.1647/LB/2024) emanating primarily from purchase of coal and gypsum from various suppliers as tabulated above [‘suppliers’ hereinafter]. It was the Assessing Officer’s contention that the parties down the supply chain who supplied coal to appellant’s immediate suppliers were dummy units who were involved in fictitious transactions involving generation of fake input tax through issuance of fake invoices without actual movement/transfer of coal and gypsum etc. The show cause notices issued to the appellant,…