2011 PLP (Trib (PTD)

M.A. JAVED SHAHEEN (JUDICIAL MEMBER).

The registered person/appellant has filed this instant appeal against Order-in-Appeal No.657 of 2007 dated 13-11-2007 passed by the learned Collector of Customs, Federal Excise and Sales Tax (Appeals), Faisalabad on the ground of rejection of refund to the extent of Rs.63,482.

2. Brief facts of the case are that during scrutiny of refund claim filed by appellant-registered person, an amount of Rs.72,257 was deferred by the Assistant Collector (Refund) due to certain discrepancies such as "unit does not exist", "exceeds declared output" and "invalid registration status". Based on such discrepancies/irregularities, the registered person was charged in terms of sections 2(14), 4,7, 8, 10, 26 and 73 of the Sales Tax Act, 1990 read with Refund Rules and they were called upon to the issue show cause as to why input tax/refund amount mentioned supra may not be rejected in terms of sections 10(4) and 11(2) read with Refund Rules, 2002 notified vide S.R.O. 575(I)/2002 dated 31-8-2002 along with penal section under section 33(11)(a)(c) of the Sales Tax Act, 1990. The adjudication proceedings culminated in passing an Order in Original No.601 of 2007 dated 22-1-2007. Being aggrieved with the treatment meted out at the adjudication stage, the appellant preferred an appeal before the learned first appellate authority who partially allowed the appeal of the appellant to the extent of Rs.8,

775. Feeling dissatisfied with the treatment given by the first appellate authority, the appellant/registered person is in further appeal before this Tribunal.

3. The learned AR appearing on behest of the appellant/registered person has challenged the orders of both the authorities below. He has argued that the appellant has submitted documents during the adjudication proceedings but the same were not considered by the concerned authorities. Learned AR has contended that Messrs R.M. Fabrics Factory is a weaver/supplier being registered with the Sales Tax Department and converted his yarn into cloth and the appellant has paid sales tax through cross cheque amounting to Rs.10,798 and 10,257 for the month March, 2005. He has contended that the supply register and return-cum-payment challan were submitted wherein it seems that the sales tax against the declared output was deposited. He has further urged that Messrs Jamali Weaving Industries is a registered person with Sales Tax Department and the sales tax of Rs.42,397 was deposited in the Government exchequer. He has contended that the show-cause notice shows exceeds declared output and the learned first appellate authority passed the order under invalid registration status. He has contended that it is the responsibility of the suppliers to deposit sales tax into Government treasury who were registered with the Sales Tax Department. On the other hand, the learned D.R. appearing on behalf of the department has supported the orders of the authorities below for the reasons recorded therein.

4. Keeping in view the above discussion, both the orders of authorities below are declared to be illegal, void and without lawful authority and the case is remanded back to Adjudicating Authority having jurisdiction with directions to provide an ample opportunity of being heard on the issue of verification of documents and to pass a fresh and speaking order. The registered person is directed to submit all the relevant documents before the learned Adjudicating Authority in support of his refund claim.

5. The appeal filed by the registered person is disposed of as above. C.M.A./20/Tax(Trib.)?????????????????????????????????????????????????????????????????????????? Order accordingly.