Law: Punjab Sales Tax on Services Act, 2012

Section: 3,14,24,38(3),48,48(2),48(3),49,52,52(1) ,56,57,63,79,79(1)

Law: Punjab Sales Tax on Services (Withholding) Rules, 2015

Section: 2(f)

ORDER 1. Brief facts of the case are that M/s Alhamd Corporation (Private) Limited, Multan, PNTN: 0101016-6, (hence referred to as 'the appellant') is a withholding agent specified in the rule 2(f) of Punjab Sales Tax on Services (Withholding) Rules, 2015. 2. The learned Additional Commissioner, PRA, Multan, observed that being a withholding agent the appellant had failed to discharge its legal obligations as withholding agent by way of withhold and deduct Punjab sales tax on payments made to un-registered persons for rendering of taxable services. A show cause notice was issued to the appellant on 13-02-2017. The tax periods involved in the show cause notice are from the tax period Februray-2015 to May-2015. 3. According to the contents of the show cause notice, the appellant made payments in aggregate of Rs. 8,225,583/- involving Punjab sales tax @16% of Rs.1,316,093/-. The nature of payments made, were for various taxable services and broker agent commission. According to the assessment record the learned assessing officer provided several opportunities of hearing and filing reply to the appellant but he did not avail. Subsequently, an order dated 10-04-2017 was passed in terms of section 52 of the Punjab Sales Tax on Services Act, 2012 read with section 14 of the Punjab Sales Tax on Services (Withholding) Rules, 2015, adjudging an amount of Rs. 1,316,093/- as recoverable along with penalty to the tune of Rs. 65,804/- in terms of section 48(2) Sr. No. 3 of the table given there under and default surcharge under section 49 of the Act, 2012, ibid. 4. The appellant aggrieved with the treatment by the learned Additional Commissioner, PRA, Multan and filed an appeal with this office under section 63 of the Punjab Sales Tax on Services Act, 2012 with the following grounds of appeal:- 1. That the impugned show cause notice has been illegally issued under section 52(1) of the Act which relates to non-levy or short-levy of tax. The appellants, being withholding agent, are not covered u/s 52 of the Act. The provisions of section 52 are distinct from the charge leveled against the appellants. Section 52(1) of the Act is reproduced hereunder for ease of reference: "52.…

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