Instant appeal has been filed by Messrs H.G.R, Traders, Faisalabad against the Order No,CIR/Z- II/ST/874 dated 31-8-2012 of learned CIR, RTO, Faisalabad wherein he had suspended sales tax registration of the appellant on the grounds that registered person has adjusted input tax against the purchases/sales of Blacklisted/Suspended/ De-registered/Non-functional units, the total value is amounting to Rs,2,031,666. It was also noticed by the learned CIR that supply of goods has not been taken place in above said business transaction as envisaged under section 2(14).
2. During hearing proceedings the learned Advocate for the taxpayer contends that adverse order has been issued without any show cause notice and without hearing the contention of taxpayer, moreover it is non-specific. All terminologies have been used by the learned CIR which gives the impression that department is itself not sure about the exact allegation.
3. On the above arguments the learned advocate requested to set aside the orders of learned CIR.
4. Learned DR present during the hearing proceedings contends that learned CIR has mentioned in his orders that interim scrutiny of record available in the system has revealed this aspect and that charges of issuance of fake/flying/purchase/sales invoices were apparent against the taxpayer so he argued that order of learned CIR may be maintained.
5. We have perused the record and heard the rival arguments and reached to the conclusion that learned CIR RTO, Faisalabad had passed the impugned order without issuance of show-case notice and without hearing the appellant. Issuance of such adverse orders detrimental to the interest of any taxpayer is void in the eyes of law. Moreover honourable Lahore High Court Lahore vide its order in Writ Petition No,6990 of 2012 which was heard on 5-4-2012 in the case of Messrs J.M.
Corporation v. The Federation of Pakistan has issued comprehensive directions how to deal with such cases.
6. Keeping in view the above the impugned order of the learned CIR, RTO, Faisalabad is set aside.
Appeal is accepted, however department is at liberty to initiate proceeds against the taxpayer in the manner and direction given by the honourable Lahore High Court Lahore as referred to above.
7. Since main appeal has been disposed of, therefore, M.A. (Stay) No,886/LB of 2012 of the taxpayer has becomes infructuous, hence disposed of.