2002 PLP 2153 (PTD)

Muhammad Ahmed Nizami for the Complainant. Dr. Akhtar Hussain, Deputy Collector of Customs and Sales Tax, Faisalabad for Respondent. DECISIONS/FINIINGS The facts stated in the complainant are that the, complainant is registered under the Sales Tax Act, 1990 since January, 2001. The unit has been audited by the Sales Tax Authorities and they have found that the records required to be maintained under section 22 of the Sales Tax Act, 1990 have been maintained properly. The complainant has been regularly filing Sales Tax Returns for the audit since January to October, 2001. It has claimed adjustment of tax paid on inputs amounting to Rs.262,210 against tax collected on outputs to the tune of Rs.391,

325. The excess of tax on output over the tax on input amounting to Rs.138,115, has been deposited.

2. However, during the scrutiny of records, the audit party observed that the registered person adjusted tax claimed to be paid, on input of electricity during the period under review amounting to Rs.109,

020. The bills, however, were neither in the name of registered person nor connection holder was a partner in the business. The auditors, therefore, held that the registered person contravened the provisions of sections 7 and 8 of the Sales Tax Act,1990 read with notification No. S.R.O. 124(I)/2000, dated 15-3-2000. It was therefore held that an amount of Rs. 109,020 was recoverable alongwith additional tax chargeable under sections 33 and 34 of the Sales Tax Act, 1990.

3. The complainant has submitted that the lengthy procedures of transfer of titles of movable property and the change of names of users/consumers in the bills .for services provided by the Service Companies at such premises have caused the problem.

4. The respondent in the reply stated that the notification S.R.O. 124(I)/2000 dated 15‑3‑2000 requires vide clause (7) that the electricity connection should be in the name of owner of the rented/leased premises. The complainant has wrongly quoted the definition of "consumer" given in clause (2), sub‑clause (c) of the Notification S.R.O.124(I)/2000,‑dated 15‑3‑2000 as the electricity bills do not fulfil the condition of section 23 of the Sales Tax‑Act, 1990. In the light of Sales Tax General Order No.8/1990 dated 18‑9‑1999 the electricity bills issued by the distribution/supply companies shall be treated as, sales tax invoice‑ under section 23 which requires printing of name, address And registration number of recipient. The electricity bills of the complainant do not fulfill the conditions of section 23 of the Sales Tax Act, 1990. Sales tax on electricity has been levied w.e.f. 16‑8‑1999. The respondent further stated that Sales Tax General Order No.8/1999, dated 18‑9‑1999 required all commercial and industrial enterprises, registered with the Sales Tax Department, to urgently intimate, the .billing section of the relevant electric supply companies, full and correct names of business enterprises (registered person), addresses at which taxable activities were conducted alongwith sales tax registration number for insertion in their computer program. Further, registered persons were required to pursue such correction by the respective billing company and ensure that it was entered by 31‑10‑1999 positively. The C.B.R., through this Sales Tax General Order, has given a reasonable time to the registered persons to ensure proper corrections of their particulars with the electric supply companies. However, the complainant did not avail the concession.

5. There is no evidence of maladministration in denying the adjustment of tax claimed to have been paid on input of electricity: The complainant does not warrant any recommendation. The complaint file is accordingly closed. C.M.A./M.A.K./307/FTO Order accordingly.