Law: Sales Tax Act, 1990

Section: 74,33(5),46,73

Sales Tax Act (VII of 1990)---Ss. 33(5), 46, 73 & 74---Delay in payment of amount of tax---imposition of penalty---According to provisions of S.73 of Sales Tax Act, 1990, payment of amount for a transaction was to be made within 180 days of issuance of the Tax invoice---In the present cash; taxpayer bad made the payment through cheque with the delay of 19 days beyond the prescribed limit of 180 days; as sequence to which a penalty of Rs.10,000 had been imposed on him by resorting to provisions of S.33(5) of the Sales Tax Act, 1990 besides refusing the adjustment of input tax---In case of failure to deposit the amount of tax due within prescribed limit of 180 days, the taxpayer would not be entitled to claim input tax until or unless such limitation was condoned by the Commissioner by exercising power delegated by the Board---Input tax adjustment was the substantive right of taxpayer, which could not be denied simply on the basis of procedural/technical lapses, but in case of violation of statutory provisions, the taxpayer would be penalized---Order of payment of amount as input tax, in circumstances, was deleted; and the payment of said amount by the taxpayer was considered to be admissible input tax---Penalty of Rs.10,000 imposed by Additional Collector on the taxpayer and confirmed by Collector (Appeals) did not call for any interference being in accordance with law prescribed under S.33(5) of Sales Tax Act, 1990. ORDER NAZIR AHMAD (JUDICIAL MEMBER).---The above titled sales tax appeal has been filed at the instance of the registered person/ appellant against the Order-in-Appeal No.75/ST/2009 dated 3-7-2009 whereby the confirmation of allegation for non-compliance of section 73 of the Sales Tax Act, 1990 (hereinafter call the Act) on account of making payment of Rs.780,273 involving input tax of Rs.101,775 after 180 days of the issuance of input tax invoice to Messrs Allied Associates Karachi, has been agitated. 2. Brief facts emanating from record are that audit of Messrs Imran Pipe Mills (Pvt.) Ltd., Lahore bearing Sales Tax Registration No.03-08-7300-005-73 was conducted for the period July, 2005 to June, 2006 as a result of which certain regularities,…

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