Law: Sindh Sales Tax on Services Act, 2011

Section: SerialNo.3 of43,43(6)(d),43(5),43(8),43(11),43(12)

Law: Income Tax Ordinance, 2001

Section: 111

SINDH SALES TAX SERVICES ACT, 2011 Section 43 Penalty for non payment of tax under two provisions of Section 43 relating to non-payment of tax cannot be invoked simultaneously as both the provisions cater two different situations.-The dispute remains in respect of penalties imposed by the Assessing Officer under serial No. 3 and 6(d) of section 43 of the Act, 2011. Serial No. 3 of section 43 deals with the penalty for failing to deposit the tax with in time or manner laid down under the Act and serial No. 6(d) of section 43 deals with the penalty for knowingly or fraudulently fails to pay, recover or deposit the actual amount of tax, or claims inadmissible tax credit or adjustment or deduction or refund. In this case Assessing Officer imposed penalty for non-payment of tax under two provisions of section 43 of the Act of 2011 relating to non-payment of tax. Both the provisions cater two different situations and cannot be invoked simultaneously. Penalties under the provision of Section 43.-If a taxpayer fails to deposit the tax amount due or any part thereof in the manner laid down under the Act or Rules made thereunder, subject to presence of mens rea penalty can be imposed under Serial No. 3 of Section 43 of the Act. If the same offence is committed knowingly or fraudulently, subject to presence of mensrea penalty can be imposed under Serial No. 6(d) of Section 43 of the Act. Meaning of the word ''knowingly".-Word "knowingly" means with knowledge which, signifies knowledge of facts on which the non payment of tax take place. Meaning of the word "fraudulently".-The word "fraudulently" means an intention to deceive or defraud, which signifies that a person does an act with intention to defraud. The taxpayer was penalized twice for committing same offence of non payment of tax. For imposing penalty under S. No. 6(d) of Section 43 the department has to establish beyond shadow of doubt that non-payment of tax was knowingly or fraudulently, which they failed.-The respondent was penalized twice for committing same offence of non payment of tax. From the contents of section 43 6(d) it is clear that the provisions can only be…