Sales TAX Special Procedures Rules, 2007

Citation Name : 2020 SCMR 131 SUPREME-COURT
Side Appellant : ZAK RE-ROLLING MILLS (PVT.) LTD.
Side Opponent : APPELLATE TRIBUNAL INLAND REVENUE
S. 3(1A) [as existed prior to 01-07-2017]---Sales TAX Special Procedures Rules, 2007, R. 58H---Steel-melter/Re-rolling mill---TAX able supplies made to unregistered persons---Levy of further sales TAX under S. 3(1A) of Sales TAX Act, 1990---Permissibility---Payment of sales TAX under a specific assessing procedure envisaged in R. 58H of the Sales TAX Special Procedures Rules, 2007, did not exempt or save the TAX -payer from levy of further TAX under S. 3(1A) of the Sales TAX Act, 1990.

Citation Name : 2020 SCMR 105 SUPREME-COURT
Side Appellant : CHIEF COMMISSIONER INLAND REVENUE REGIONAL (RTO) PESHAWAR
Side Opponent : PAPER WORLD (PVT.) LTD. AMANGARH, NOWSHERA
S. 40A [as it then was in the year 2004]---Evasion of sales TAX ---Search without warrant---Raid and search at a premises other than the business or manufacturing premises or registered office of TAX payer---Legality---Statement recorded for purposes of subsection (1) of S. 40A of the Sales TAX Act, 1990 ('the Act') was in substantial compliance with the requirements thereof---Matters such as serial number or office order, or name of informer were not, as such, required by the provision to be set out under the said statement---Fact that the raid was conducted within one day of the receipt of information served only to show that there was urgency in the matter, and not as wrongly concluded by the High Court that there was sufficient time to obtain a warrant from the concerned Magistrate in terms of S. 40 of the Act---Record recovered from the raid was indeed that of the respondent-TAX payer, and related to its business matters and was supportive of the case sought to be made against it, i.e., of clandestine removal of goods and evasion of TAX ---Respondent never explained as to why such record was found at a premises that the respondent itself claimed was "abandoned and vacant", i.e., at other than its place of business or manufacture or registered office, or any other place where it could be reasonably expected or plausibly explained that the record could be maintained---In such circumstances, where the TAX department was operating on the basis of a secret tip-off, the concerned officer could reasonably conclude that the record and material might be removed at any moment---Hence, the ingredients for invoking S. 40A of the Act existed in the facts and circumstances of the present case---Appeal filed by TAX department was allowed accordingly.