Law: Sales Tax Act, 1990

Section: 7(1),8(1)(b)

Sales Tax Act (VII of 1990)---Ss. 7(1) & 8(1)(b)---S.R-O. 1307(I)/97, dated 20-12-1997--­Determination of tax liability---Demand of sales tax alongwith additional tax for claiming inadmissible input tax credit against purchase/ import of spare parts of loader in violation of S.R.O. 1307(I)/97, dated 20-12-1997---Appellant contended that S.R.O. 1307(I)/97, dated 20-12-1997 issued under S.8(1)(b) of the Sales Tax Act, 1990 was in conflict with the provisions of S.7 of the Sales Tax Act, 1990 which allowed input tax credit in respect of a tax period on all goods acquired for purpose of making taxable supplies and demand of sales tax and imposition of penalty was without lawful authority ---Validity---S.R.O. 1307(I)/97, dated 20-12-1997 issued under S,8(1)(b) of the Sales Tax Act, 1990. disallowed input tax credit on all goods which did not form direct consistently or integral part of the taxable goods produced---On examination of provisions S.7(1) and 8(1)(b) of the Sales Tax Act, 1990 and S.R.O. 1307(I)/97, dated 20-12-1997, Appellate Tribunal found that S.R.O. 1307(I)/97, dated 20-12-1997 was not in conflict with any substantive provision of Sales Tax Act, 1990---Order was upheld to the extent of demand of sales tax alongwith additional tax and penalty was remitted by the Appellate Tribunal. Writ Petition No. 9272 of 1998 and Civil Petitions Nos. 1986-L, 1987-L, 1995-L, 1996-L and 2012-L of 1998 ref. 1999 PTD 2174 rel. JUDGMENT MIAN ABDUL QAYYUM, MEMBER (JUDICIAL). ---This appeal is directed against Order-in-Original No. 106 of 2001, dated 11-7-2001 passed by the Additional Collector Adjudication). Lahore. By this order the learned Adjudicating Officer has adjudged a demand of sales tax amounting to Rs.78,094 alongwith additional tax against Messrs Ittehad Chemicals Ltd. G.T. Road, Kala Shah Kaku for claiming inadmissible input tax credit against purchase/import of spare parts of loader in violation of S.R.O. 1307(I)/97, dated 20-12-1997. A personal penalty of Rs.10,000 has also been imposed upon the appellant besides the aforesaid amount of tax. 2. The appellant's case is that S.R.O. 1307(I)/97, dated 20-12-1997 issued under section 8(1)(b) of the Sales Tax…

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