Law: Sindh Sales Tax on Services Act, 2011

Section: 43,Second Schedule

Law: Income Tax Ordinance, 2001

Section: 111

SINDH SALES TAX ON SERVICES ACT (XII OF 2011) -S. 43, Second Sched.-Levy of sales tax for short payment, default surcharge and penalty-Taxpayer was a registered person engaged in providing or rendering "Event Management Services-Allegation against the taxpayer was that he had provided Event Management Service but failed to pay amount of sales tax for the relevant period and that file monthly sales tax return-Assessing officer, in his order-in-original had stated that taxpayer had only charged sales tax on commission service fee " and failed to charge, collect and pay sales tax on "value of taxable service", and paid short amount of tax-Assessing officer in circumstances, levied sales tax for short paid amount of sales tax, default surcharge and penalty-Appellate Authority dismissed appeal filed by taxpayer for non-prosecution-Validity-Taxpayer had deposited tax due only immediately after order-in-appeal-Allegation against the taxpayer was not of non-payment of tax, but short payment-Liability to pay default surcharge and penalty was not a necessary consequence or corollary of non-payment of tax, within stipulated period, but was subject establishment of mens rea, nonpayment of tax, mala fide intention or evasion of tax by taxpayer-In the present case, department had failed to establish the necessary ingredients of imposing default surcharge and penalty- Mere non-deposit of tax without element of mens rea, wilfulness and mala fide, could not entail surcharge and penalty-Orders-in-original passed by Assessing Officer and appellate Authority, were set aide to the extent of imposing penalty and default surcharge. Pakistan through Secretary Ministry of Finance and others v. Hardcastle Waud (Pakistan) Limited PLD 1967 SC 1 and Commissioner of Income Tax v. Habib Bank Limited 2007 PTD 901 ref. THIS ORDER PASSED BY: JUSTICE (RETD.) NADEEM AZHAR SIDDIQI, CHAIRMAN: ---.--- This appeal has been filed by the appellant challenging the Order-in-Appeal No. 128 of 2016 dated 18.08.2016 passed by the Commissioner (Appeals) in Appeal No. 192 of 2014 confirming the Order-in-Original No.657 of 2014 dated 18th November, 2014 passed by the Assistant Commissioner (Muhammad Shoaib…

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