A show-cause notice was issued to the appellant by the respondent No.2 on 6-2-2001. It was alleged that in violation of section 7 of the Sales Tax Act, 1990, the appellant adjusted or claimed input tax. A demand for sales tax in the sum of Rs.5,36,288 was raised. The appellant contested that notice. Vide order in original, dated 7-4-2001, the respondent No.2 called upon the appellant to pay the said amount of the said tax and further to pay a penalty of Rs.26,814. An appeal filed by the appellant was heard by the learned Customs, Central Excise and Sales Tax Appellate Tribunal, Bench-II, Lahore. We may note here that the learned Tribunal examined the .Relevant invoices produced by the appellant and found it entitled to adjustment of Rs.62,000. The penalty was also set aside and instead it was directed that after giving the said adjustment in the amount of sales tax, additional tax be charged at a current rate. This was done vide judgment, dated 27-7-2004.
2. Learned counsel for the appellant contends that since the raw material which was consumed by the appellant after 1-4-1998 was acquired by the appellant after payment of sales tax, he was entitled to adjust the said amount against supplies made from the existing stores. He relied upon the case of Messrs Fauji Sugar Mills v. Assistant Collector of Sales Tax etc. (GST 2004 CL 268).
3. We have examined the impugned judgment of the learned Tribunal as also the order of the respondent No.2 in the light of submissions made by the learned counsel. We have also examined the said Division Bench judgment of this Court. To our mind, section 7 of the Sales Tax Act, 1990, leaves little to imagination. It is only the input tax paid during the tax period and for the purpose of taxable supplies made, that a registered person is entitled to adjust the same from the output tax that is due from him in respect of the said tax period. The matter is further clarified in subsection (2)(i) of section 7 which conditions the said entitlement upon possession of tax invoice in respect of said supply for which a return is furnished.
4. Now there is no denial that the tax was levied with effect from 1-4-1998 and the taxable supply commenced thereafter. So far as the said judgment in the case of Messrs Fauji Sugar Mills is concerned, the same was given with reference to the peculiar circumstances of the said case as repeatedly noted by their Lordships in the said judgment. Be that as it may, the relief envisaged by the said judgment has already been granted by the Tribunal to the appellant with reference to April, 1998. No other point has been urged. No question of law arises in this appeal in terms of section 47 of the Sales Tax Act, 1990. .The STA is accordingly dismissed in limine. .