Law: Sales Tax Act, 1990

Section: 34,33,36,10(2),72,67,11(2),36(1)(2),10(3 ),3(3)(a),33(2)(cc),10(4),10

(a) Sales Tax Act (VII of (990)--- ----Ss. 34, 33(2)(cc), 10(3), 3(3)(a) & 67---Additional tax and penalty---Adjustment of claimed refund---Levy of additional tax along with penalty on the ground that opening balance of carry forward amount of input tax was incorrectly shown and tax payable was converted into refundable/carry forward amount and remained unpaid for a certain period---Such amount of sales tax payable for those months was adjusted later do from the refund claims of other months but additional sales tax was neither assessed at the time of adjustment nor paid by the taxpayer---Appellant/taxpayer contended that refund of excess amounts of input tax within time was in utter disregard to statutory provisions of Sales Tax Act, 1990 as well as clear-cut directions of the authorities---Adjustment was made under compulsion and the same was intimated to the Department---Validity---Neither the Department had brought any evidence to the effect that the principal amounts of sales tax in the form of refunds were not due to the appellants not such an order for the recovery for the same had been passed by the Adjudication Officer---Input tax and adjustment thereof was a substantive right of the taxpayer and could not be taken away or withheld on mere technical grounds---Valid and due refunds were withheld by the Department without any objection' and were not released even after furnishing of bank guarantees---Show-cause notice issued without mentioning of relevant sections 10 and 36 of the Sales Tax Act, 1990 was illegal---Any demand in consequence thereof in the form of additional tax and penalty was also illegal and was set aside by the Appellate Tribunal---Appeal was accepted and the show-cause notice as well as the Order-in-Original were held to be illegal and of no consequence. Messrs Pfizer Ind. v. Federation of Pakistan PLD 1998 SC 64 and Messrs Trade Link v. Collectorate of Sales Tax, Lahore 2003 PTD (Trib.) 928 rel. The Coca Cola Export Corp. v. The Additional Collector (Appeal S.T.A. No.748/LB of 2001; 2002 PTD (Trib.) 1455; Messrs Blue Horizon (Pvt.) Ltd, v. Collector (Appeals) PTCL 1999 CL. 162; The Collector v. Messrs Novartis 2002 PTD 976; 1992…

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