FAISALABAD ELECTRIC SUPPLY COMPANY LTD., FAISALABAD vs The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS' OFFIC

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FAISALABAD ELECTRIC SUPPLY COMPANY LTD., FAISALABAD VS The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS' OFFICE, FAISALABAD Ss. 8(1)(a), (f), (g), (h) & (i) & 11(2)---Tax credit not allowed---Order passed on ground(s) other than those mentioned / confronted through the Show-Cause Notice---Argument of the Department was that, during scrutiny, it found Registered Person( Electricity Supply Company / DISCO ) to have claimed / adjusted inadmissible input tax during four tax periods on purchase of certain items (office equipment, mineral water, travel sets, soaps and sugar)---Registered person filed appeal before the Appellate Tribunal Inland Revenue as the Commissioner maintained Order-in-Original for recovery of amount along with default and penalty---Validity---Record revealed that on the strength of Cls. (a), (f), (g), (h) and (i) of subsection (1) of S. 8 of the Sales Tax Act, 1990, show-cause notice under S. 11(2) of the Sales Tax Act, 1990, was issued in respect of input tax claimed on purchase of certain items (office equipment, mineral water, travel sets, soaps and sugar) from four suppliers, however, as per reply along with sales tax invoices submitted by the appellant(Registered Person / DISCO), the input tax involved was found to be relating to different kinds of items like Chain Pulley Block 3 Ton, Topcon Easy/Auto Station with metallic tripod etc., Shoes, Main Breaker Pipes for pressure gage, Vacuum Pump, etc.---Appellate Tribunal Inland Revenue observed that the impugned order was passed on grounds other than those confronted through the Show-Cause Notice, and was therefore, not maintainable on said score alone---Thus, assessment order as well as appellate order in respect of adjustment of input tax were passed on the basis of wrong assumption and application of law and incorrect appreciation of facts---Appellate Tribunal Inland Revenue set-aside the impugned orders and allowed the appeal, filed by the registered person, in circumstances.

FAISALABAD ELECTRIC SUPPLY COMPANY LTD., FAISALABAD vs The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS' OFFICE, FAISALABAD Ss — 2025 PTD 602 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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