POWERLINE TRADING COMPANY, FAISALABAD vs COMMISSIONER INLAND REVENUE, RTO, FAISALABAD Ss

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POWERLINE TRADING COMPANY, FAISALABAD VS COMMISSIONER INLAND REVENUE, RTO, FAISALABAD Ss. 2(14), 2(37), 3 & 8---Tax fraud---Issuance of fake flying invoices---Input tax illegally claimed---Sales tax return, non-submission of---Due tax, non-depositing of---Mere filing of Annex-C without sales tax return---Scope and effect---Plea of the Appellant (Company / Registered Person) was that sales tax return could not be inadvertently filed---Validity---Record transpired that the Appellant (Company / Registered Person) was charged with non-submission of sales tax return, non-deposit of due tax and issuance of fake/flying invoices to facilitate claim of illegal input tax---Admittedly, the appellant did not submit sales tax return for the tax period under consideration and only Annex-C was filed---Plea of the Appellant / Company was not only unsatisfactory as to how Annex C was filed and sales tax return was forgotten, but also contradictory as before the Commissioner Inland Revenue (Appeals) it was pleaded that due to system error sales tax return could not be filed ; which established that sales tax return was not filed intentionally just to avoid payment of sales tax---Non-submission of sales tax return also confirmed that no input tax was available to the appellant and only paper transactions were executed to facilitate the buyers to adjust illegal input tax without any valid backup---Even certain documents (e.g. invoices, party details etc.) submitted by the Appellant (to establish that transactions were genuine and tax was paid) established that transactions were just paper transactions without any backup---Non-submission of sales tax return and non-deposit of tax was an admitted position and mere filing of Annex-C reflected that the buyers/parties were facilitated to claim illegal input tax---Charge of tax fraud and other violations of provisions of Sales Tax Act, 1990, stood established against the appellant / registered person ; hence, there was no illegality in the original assessment order having been rightly confirmed by the Commissioner Inland Revenue (Appeals)---Appellate Tribunal Inland Revenue maintained impugned orders passed by Authorities below---Appeal, filed by registered person, was dismissed, in circumstances.

POWERLINE TRADING COMPANY, FAISALABAD vs COMMISSIONER INLAND REVENUE, RTO, FAISALABAD Ss — 2025 PTD 856 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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