Law: Sales Tax Act, 1990

Section: 7

Sales Tax. Act (VII of 1990)--S. 7---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000)---Determination of tax liability---Non-speaking order--­Input tax credit was disallowed on the ground of fake invoices without considering the complainant/assessee's contention that material was purchased from the suppliers registered with the Sales Tax Department---Validity---Case had been dismissed summarily without taking into consideration the assessee's point of view and without examining the registers/documents presented by the complainant/ assessee in support of their contentions---Certain critical aspects of the case had not been examined and, analyzed by the Department before arriving at a decision---Well reasoned speaking order ought to have been passed in the case on its merits---Federal Tax Ombudsman recommended the Revenue Division to direct the Collector Sales Tax, to re-open the order under S.45A(4) of the Sales Tax Act, 1990, to examine the record of the departmental proceedings and to decide the case afresh on its merits keeping in view of the foregoing observations, the contentions of the complainant and valid admissible evidence. FINDINGS/ORDERS Messrs Ali Packages, Faisalabad, the complainant, has alleged maladministration. on the part of the Sales Tax Authorities, Faisalabad for denying the credit of input tax of Rs.348036 to their unit and for imposing on them a penalty of Rs.104500 for contravention of the provisions of the Sales Tax Act, 1990. It has been pleaded that the authorities be directed to allow them the input tax and remit the penalty. Brief facts made, by the complainant are: (i) In the Order-in-Original No.55 of 2002, dated 1-2-2002 passed in their case by the Deputy Collector (Adjudication), it was held that they had claimed illegal adjustment of the above said amount ordering its recovery. (ii) The Order passed by the D.C. did not incorporate the contents of their reply to the show-cause notice. While deciding the case the D.C. had wrongly observed that (i) the complainant had no defence in the case and (ii) were willing to deposit the adjusted amount. The D.C. dismissed their case without, reason. (iii) The…

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