JUDGMENT

This appeal arises out of Application No.12/2024 against which consequential order dated 07.01.2025, passed by the Deputy Commissioner Inland Revenue, Unit-I Lyallpur Zone, RTO Faisalabad.Briefly stated the relevant facts of the case are that the appellant is an 'AOP' engaged in weaving and trading of textile fabrics. Its business activity involves purchasing yarn of different counts as raw material, weaving it into grey fabrics partly in-house and mainly through third parties on toll basis and getting the fabric dyed and finished by third parties. Physical verification of business premises of appellant was conducted by the assessing officer and observed that for the period from February 2020 to June 2024 that the appellant claimed inadmissible input tax based on fake/flying invoices, failed to pay further tax on sales to unregistered persons under section 3(1A), and failed to deposit 10% output tax under section 8B. For these reasons, it was inferred that the appellant had committed t...