G O V E R N M E N T O F PA K I S TA N

O F F I C E O F T H E A S S I S TA N T C O M M I S S I O N E R I R
U N IT- 22, RA N GE -1, PE S H AWA R ZONE
REGIONAL TAX OFFICE, PESHAWAR
Jamrud Road, University Town Peshawar

C. No.ST/UNIT-22//2019/ Dated: 08/04/2019

SHOW CAUSE NOTICE

Whereas during the course of audit of sales tax affairs of you, M/S MEDWORLD
INTERNATIONAL, Peshawar having NTN. 2296516-5 for the tax period 07-2015 to 06-2016 under
section 72(B) of the Sales Tax Act, 1990, the following discrepancies were observed:

NON PRODUCTION OF SALES TAX RECORD.

2. During the course of sales tax audit you, M/S MEDWORLD INTERNATIONAL, Peshawar
having NTN. 2296516-5 failed to provide the sales tax record which is required to be maintained under
the Sales Tax Act, 1990, and also failed to join the inquiry proceedings in violation of the
aforementioned provisions of law which attracts penalty equal to one hundred per cent of the amount of
tax involved which is Rs.3,923,913/- in terms of section 33(12) of the Sales Tax Act, 1990 on account
of failure of the taxpayer to present the record when required under sections 25 and 72(B) of the Sales
Tax Act, 1990 and penalty of Rs.65,000/- under sections 33(9)(a), 33(9)(b) and 33(9)(c) of the Sales Tax
Act, 1990 for non-compliance of audit notices. This amount is recoverable from the registered person
under section 11 of the Sales Tax Act, 1990 besides production of record for audit.
INADMISSIBLE INPUT TAX ADJUSTMENT:

3. During the course of sales tax audit for the tax period 07-2015 to 06-2016, information regarding
your bank statement was obtained under section 38(B)(2) of the Sales Tax Act,1990 vide letter C.No.
ST/UNIT-22/2019/1663 dated 12.03.2019 and the concerned bank submitted the asked information in
statement form vide their letter dated 02.04.2019. Scrutiny of your bank account statement surfaced the
fact that you have made nil credit transactions in the aforementioned tax period while on the other hand
your sales tax profile depict the fact that you are declaring sales and purchase activity to the tune of
Rs.23,081,841, since all of your purchase invoices are more than Rs.50,000/- while scrutiny of your
bank statement revealed that debit and credit side are nil, which mean that the sale and purchase
transactions declared by you in your sales tax returns for the tax period 07-2015 to 06-2016 are mere
paper transactions and no real sales and purchases were made by you. The main intention behind
aforesaid scenario might be to intentionally avoid payment of due sales tax to the tune of Rs.3,923,913/-.
Thus by mean of this you deprived of national kitty from its legitimate revenue amounting to
Rs.3,923,913/- and violated the provision of section 3, 6, 7, 8,, 21, 22, 23, 25, 26 and 73 read with
sections 2(25) and 2(37) of the Sales Tax Act, 1990.

4. Now therefore, M/S MEDWORLD INTERNATIONAL, Peshawar having NTN.

2296516-5 , are hereby called upon to show cause under section 11(3) of the Sales Tax Act, 1990 as to
why the sales tax to the tune of Rs.3,923,913/- may not be recovered from you and penalty of
Rs.3,923,913/- under section 33(12) and penalty of Rs.65,000/- under sections 33(9)(a), 33(9)(b) and
33(9)(c) along with default surcharge under section 34 of the Sales Tax Act,1990 for violation of section
3, 6, 7, 8,, 21, 22, 23, 25, 26 and 73 read with sections 2(25) and 2(37) of the Sales Tax Act, 1990.

4. Your written reply should reach the undersigned within ten days of the receipt of this
notice. The case is fixed for hearing on 18-04-2019 at 11.00 AM in the office of the undersigned situated
at 1st Floor, Regional Tax Office (RTO), Jamrud Road, Peshawar.

5. If no written reply to the show cause notice is received within the specified period or no
one appears on the date fixed for hearing, tax liability under section 11(2) and 33 of the Sales Tax Act,
1990 will be determined on the basis of available information with the undersigned.

Registered to:

MR.ABBAD C/O M/S MEAD WORLD INTERNATIONAL, RABBANIA COLONY, PALOSI

ROAD NEAR AGRICULTURAL UNIVERSITY PESHAWAR .

(USMAN ASIF)
ASSISTANT COMMISSIONER IR