Law: Sales Tax Act, 1990

Section: 34,34(1)

[Sales Tax Act (VII of 1990)],,. Sections 34(1),... Appeal,.. Appellant was engaged in supplying gas to a company, for this purpose he laid down gas pipeline,, The said company paid in four heads to the appellant, i.e. Monthly Demand Chares, Monthly Commodity Charges, Monthly Transportation Demand Charges and Transportation Commodity Charges,, Show-cause notice,.. Appellant paid sales tax only on commodity charges, whereas it was required to pay sales tax on all the aforementioned heads/charges,.. Chargeability of default surcharge,, AR stated that the respondent had demanded payment of sales tax and default surcharge, appellant already paid the principal amount of the sales tax payment in pursuance of the ATIR"s in STA No. 11/IB/2011, in which the default surcharge had been deleted for the reason hat there was no willful default on the part of the appellant with regard to delay in payment of the principal amount, was upheld by the honourable Islamabad High Court in STR No. 173/2011, dated 09/06/2011, affirmed by the honourable Supreme Court of Pakistan in CPLA No. 993/2011, dated 21/07/2011. The STA No. 11/IB/2011 attained finality, the respondent failed to implement the order of the ATIR, honourable Islamabad High Court and honourable Supreme Court of Pakistan with regard to remission of the default surcharge,., On the strength of this reasoning the AR pleaded that the default surcharge in respect of the appellant"s appeal in STA No. 67/IB/2012, was too liable to be remitted. DR pleaded that Section 34(1), Sales Tax Act, 1990 clearly provides that default surcharge for delayed payment of sales tax is chargeable no matter there was a willful default or otherwise. The learned DR also informed that the Revenue had already filed a reference in honorable Islamabad High Court against part of the Tribunal"s in STA No.11/IB/2011 relating to remission of the default surcharge,.. Findings of the Tribunal that the chargeability of default surcharge shall reckon after the Tribunal rendered its Judgment, which in continuity of the judicial proceedings culminated in to finalization of the Tribunal"s order, in this light the default surcharge in respect of the tax year…

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