Law: Sales Tax Act, 1990

Section: 3(5), 8, 8(1)(a), 8(1)(f), 8(1)()g, 11(2), 26(1), 33(5), 33(17), 34

    Brief Facts   1. Background of the Appeals M/s Bunny’s Limited, Lahore (NTN/STRN: 0452482-9) filed two connected appeals (STA No. 270/LB/2021 and STA No. 267/LB/2021) before the Appellate Tribunal Inland Revenue, Lahore Bench, against separate orders of the Commissioner Inland Revenue (Appeals), Lahore. Both arose from assessment orders passed under Section 11(2) of the Sales Tax Act, 1990. The Tribunal disposed of both appeals through a consolidated order dated 22.06.2026. 2. STA No. 270/LB/2021 – Allegations & Assessment The Officer Inland Revenue observed short payment of sales tax, further tax and extra tax, and non-filing of special sales tax returns. Assessment order dated 10.05.2018 created demand of Rs. 2,712,714/- plus default surcharge and penalties. CIR(A) remanded short/non-payment of sales tax and further tax for verification, confirmed further tax, extra tax, default surcharge and penalty for non-filing of special returns (restricted to Rs. 245,000/-), and deleted certain penalties. 3. STA No. 267/LB/2021 – Allegations & Assessment The Officer Inland Revenue found input tax claimed against invoices where suppliers had not declared corresponding output tax. After partial reconciliation, demand of Rs. 2,553,347/- was created. CIR(A) remanded input tax on ghee, cooking oil and sugar (Rs. 2,096,163/-) for verification, confirmed remaining Rs. 119,320/- and inadmissible input tax of Rs. 148,728/- under Section 8(1)(a),(f),(g) read with SRO 490(I)/2004, deleted penalties, and confirmed default surcharge (subject to recalculation). 4. Taxpayer’s Defense before Tribunal The AR argued that CIR(A) should have set aside the orders instead of remanding. Despite repeated opportunities and adjournments, no supporting evidence, reconciliations, invoices, returns, CPRs or other material was produced before the Tribunal to rebut the findings of the authorities below. 5. Tribunal’s Findings Remand for factual verification of payment and input tax claims causes no prejudice and affords a fair opportunity to the registered person. No documentary evidence was produced to establish payment of extra tax or…