I.    EXECUTIVE SUMMARY

Further to KQU 3000, being an important matter, we would inform you about --------------------- (Attachment CS57764.1) ensuing paragraph, with emphasis ours in bold & Underline for quick reading and matter in Italics ours in  the Detailed part.

Through instant appeal the appellant has assailed the appellate order No -------------------- recorded by the learned CIR (Appeals-II) Lahore under section 45-8 of the Sales Tax Act. 1990 (STA)

The case has been decided by Exparte, against the taxpayer and no AR was present. Hence, refer to KCR para C infra.

II.     DETAILS

A.   Brief facts

1  to 4.

B.   AR Contention as per Grounds (as not present in person)

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C.  DR Contention

The learned DR strongly opposed the contentions put forth by the learned and stated multiple opportunities of being heard were provided by the assessing officer but on the due date of hearing neither anybody attended the proceedings nor responded to the notices. He further contended that lack of interest in the instant case shows that the appellant has nothing to say in his defense, hence the orders passed by authorities below need not to be warranted

D.   ATIR Deliberation

1.       ATIR heard the arguments advanced by learned DR and perused the relevant record on file After having taken regard to the facts of the case in its entirety, we are of the considered view that the contentions raised by the taxpayer in the grounds of appeal have no substance. ATIR also looked into the matter carefully and came to the conclusion that the appellant neither before the assessing officer nor at the appellate stage has been able to establish his stance with any documentary or material evidence, hence the learned CIR(A) has rightly decided the case in the following manner:-

The alleged liability / short payment of tax has arisen on account of reconciliation of excluded amount of sales tax from electricity bills in arisen of sub-Rule (3A) of Rule 58H of Chapter XI (Special Procedure for Payment of Sales Tax by Steel Melters, Re-Rollers and Ship Breakers) of STPR, viz a viz cheques submitted against exclusion. The appellant failed to provide the payment proof against exclusion in the shape of CPRs/ Challan which was the only source to ascertain the encashment of the cheques. Therefore imposition of short paid amount along with default surcharge and penalty is in accordance with the law and there is no violation of law in this respect Further the appellant did not pay the tax knowingly deliberately and fraudulently therefore the provisions of section 33(13) & 33(19) read with section 2(37) are squarely applicable in the instant case The grounds put forth by the appellant are immaterial and baseless hence rejected. The appellant has neither pointed out any error in the reconciliation already recorded in the impugned order nor furnished its own reconciliation along with the copies of CPR challan to prove as to whether or not the figure of the alleged tax period is correct. As such, I do not find any reason to intervene for the appellant. The impugned order is therefore upheld in totality and the department is directed to make concrete effort to recover the unpaid amount from the appellant along with default surcharge and penalty.

Even before ATIR no one tendered appearance to rebut the findings of the authorities below with any concrete material evidence. It is a settled proposition of law that the onus to establish the veracity of the declared version was on the part of the taxpayer. The reference is made to the provisions contained in Article 117 & 118 of the Qanoon Shahadat Ordinance, 1984 which stipulate as under-

"117. Burden of proof: (1) whoever desires any Court to give judgment as to any legal right or liability dependent on the existence of facts which he asserts, must prove that those facts exist.

118. The burden of proof in a suit or proceeding lies on that person who would fall if no evidence at aff were given on either side".

E.  ATIR Decision

In view of above facts recorded by ATIR, with satisfactory mind concluded that the learned CIR(A) passed well reasoned order sported with facts and recorded in the impugned appellate order. Hence, ATIR do not see any reason to interfere in the impugned appellate order passed by the learned CIR(Appeals-II) Lahore dated 22.10.21 which certainly does not suffer from any factual or legal infirmity and is hereby maintained. Accordingly, this would result into dismissal of the taxpayer's appeal being devoid of any merits.

III.   KASBATI & CO RECOMMENDATIONS 

The case could be argued by the AR and could lead to favorable order. 

Hence, we expect that your entity would be ensuring that the AR is present, the case is being prepared well and will be presented well. Your Entity Representative may present with the AR in the Appellate Forum. 

When we appear before CIRA or ATIR, we always offer our clients to be with us to see our efforts and Appellate Forum appreciation of the same, Alhamdolillah.

Even when we appear before HC & SCP Advocates to brief the case, we always prefer the Clients Tax or Legal Representative to attend with us.

We shall be pleased to assist in the above matters, in order to avoid Pitfalls.

IV.   FURTHER DETAILS

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.