Law: Sales Tax Act, 1990

Section: 3,10,11,33,34

(a) Interpretation of statutes--- ----Ramedial and curative legislation--- Retrospective effect---Principles---Such legislation has retrospective effect---Beneficial executive orders/notifications have retrospective effect. CIT v. Shahnawaz Ltd. and others 1993 SCMR 73; Ellahi Cotton Mills Ltd., and others v. Federation of Pakistan PLD 1997 SC 582 = 1997 PTD 1555 and 2004 PTD (Trib.) 2417 rel. (b) Sales Tax Act (VII of 1990)--- ----Ss. 3, 10, 11, 33 & 34---Sales Tax---Short payment---Surcharge and penalty---Retrospective effect---Jurisdiction---Taxpayer was aggrieved of notice issued by authorities for recovery of deficient sales tax---Appellate authority decided matter in favour of taxpayer on ground that reduction in rate of sales tax was beneficial which was retrospective in nature---Validity---Enactment reducing rate of sales tax from 17% to 16% did not, in any manner, come within ambit of curing a mistake, error or ambiguity and same could be termed as concessional to encourage taxpayers--- Appellate authority ignored that sales tax was an indirect tax and any reduction inrate was in no way beneficial to a person or business registered for sales tax purposes---Any such benefit, in any case, was for the general public---Claim of taxpayer that reduction in rate of sales tax was available with retrospective effect as beneficial to them, was wrong and baseless---Indirect tax like sales tax was applicable on each and every transaction separately and once a transaction was completed and its effect transferred to final consumer/ general public, it became past and closed transaction, which could not be amended or corrected by assuming retrospective effect of a beneficial notification or executive order---Rate of sales tax could not be reduced through an executive order/notification---Appellate Tribunal Inland Revenue vacated the order passed by appellate authority---Appeal was allowed accordingly. Concise Oxford Dictionary; Chambers Dictionary; Black's Law Dictionary (Ninth Edition) and State Bank of Pakistan v. Messrs Fiasal Mills Ltd. 1997 SCMR 1244 ref. THIS ORDER PASSED BY: MUHAMMAD JAWED ZAKARIA, JUDICIAL MEMBER:---.--- This Sales Tax Appeal has been…

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