Law: Sales Tax Act, 1990

Section: 36,46

Sales Tax Act (VII of 1990)---Ss. 36 & 46---Determination of amount of Sales Tax---Limitation---Record had shown that for the years 1990-91 to 1994-95 as per provisions of S.36(2) of Sales Tax Act, 1990, per the Finance Act, 1996 period of limitation was five years, whereas prior to amendment of Finance Act, 1996 it was 10 years---Show-cause notice in the present case had been issued on 2-2-2002, order-in-original had been passed on 1-6-2006, which was beyond the prescribed period of limitation of five years---Show-cause notice and order-in-original being barred by limitation were nullity and were vacated. ORDER We intend to dispose of above captioned appeal instituted against the impugned order recorded vide O.N.O No.44 of 2000 on the grounds that demand relating to tax period 1989-90 to 1994-95 is barred by limitation as under the law period of limitation under section 36(3) is five years, while the O.N.O has been passed after lapse of such period. That annual sale of Rs.3,830,661 as allegedly shown in the balance sheet for 1996-97 is not included in the sale presumed at Rs.30,357,9000, computed against the alleged amount of withholding tax deducted under section 50(4) of the Income Tax Ordinance, 1979, while the tax deduction of withholding tax as per balance sheet amounting to Rs.9,10,737 is accumulative amount of tax for the years 1984-85 to 1996-97 and has been shown as receivable. Precisely the facts of the case as per record are that appellant is manufacturer of furniture, it was found by the audit team that for tax period 1990-91 to 1994-95 the taxpayer failed to absolve the liability of tax amounting to Rs.2,56,000. That for tax year 1996-97 the registered person supplied taxable furniture worth Rs.3,830,661 to various customers, but failed to deposit the leviable sales tax at standard rate resulting the non- payment of said levy to the tune of Rs.6,74,871. That from annual accounts of the same year 1996-97 submitted to the income tax department, showing the deduction of withholding tax under section 50(4) of Income Tax Ordinance, 1979 at Rs.9,10,737 which were without payments of sales tax for making taxable supplies to the Govt. are hidden and…

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