2012 PLP (Trib (PTD)

SHAHID JAMIL KHAN (JUDICIAL MEMBER).

Depart-ment has assailed CIR(Appeals)'s Order No. 141 of 2010 dated 22-7-2010. The relevant part from the impugned order is re- produced:-- "A detailed examination of the order-in-original and the case record reveals that the refund issued to the appellant was held to be recoverable on the sole ground that invoices were issued by Messrs Adeel Packages and the supplier was subsequently Black-listed. I find that after the above referred judgment of the learned Appellate Tribunal Inland Revenue, Lahore, the Order for blacklisting ceases to have any legal effect and is no longer in the field and cannot be pressed into service for disallowing the input on the invoices issued by the supplier. Hence the invoices issued by Messrs Adeel Packages on the basis of which refund was issued cannot be assailed. This being the position, I find the plea of the appellant to be correct, which is accepted and the impugned order-in-original is set-aside on this score only."

2. DR contends that sufficient opportunity was provided to the respondent registered person to prove that tax was duly deposited against the invoices in question. He submits that department had valid reason to doubt the veracity of the invoices as the supplier was blacklisted. The learned counsel of the respondent registered person has supported the impugned order and submits that the orders of blacklisting the supplier was set aside by this Tribunal, based on which, CIR(Appeals) had passed the order in favour of registered person.

3. We have perused the record in light of the arguments made by the parties. Operative para of show cause notice starts with the words "prima facie this makes reasons to believe ...... ", which means that the department itself was not sure at the time of issuing show cause notice whether tax was deposited in national exchequer or not. DR was asked to show from Order-in-Original or show cause notice where registered person was confronted with the order of blacklisting or where any nexus between the invoices issued by the blacklisted company or reasons of blacklisting was drawn. The DR failed to do so. As pointed out by AR, CIR(Appeals) has relied on judgment by this Tribunal in S.T.A. No.2292/LB/2009 Dated 6-5-2010. Through this judgment order of blacklisting the supplier was set aside, because the show cause notice as well as the order-in-original had many contradictions. Operative part of the judgment is reproduced:-- "Keeping in view the observations given above. The appellant is directed to approach the concerned officer along with certified copy of this order within 15 days. The officer concerned is directed to conclude the proceedings within 60 days from the receipt of this order, under intimation to the Assistant Registrar at Lahore Bench of this Tribunal. Consequently, the orders impugned before us are set aside and case is remanded as per directions noted above." Under the circumstances the order by CIR(Appeals) is found well reasoned and justified. Appeal by the department is dismissed. Disposed of. C.M.A./21/Tax(Trib.) Appeal dismissed.