Law: Sindh Sales Tax Ordinance (VIII of 2000)

Section: 3, Schedule

(a) Taxation- -Delegated legislation-Tax could not be levied automatically through a delegated legislation until and unless it was leviable under the charging provision of the fiscal statute. (b) Sindh Sales Tax Ordinance (VIII of 2000) [since repealed]- - S.3 & Schedule, Item No.2-Television channels-Sales tax on advertisements-Short payment of sales tax-Recovery of short paid amount along with default surcharge and penalty-Dispute between the petitioner (company owning certain television channels) and the tax department was over the issue of payment of sales tax on services of advertisements being telecast on the petitioner's television channels- Collector (Audit) found that the petitioner was involved in short filing of payment of sales tax in its monthly sales tax returns-Order-in- Original was passed against the petitioner by the Additional Collector (Adjudication) directing recovery of short paid amount from the petitioner along with default surcharge and a penalty equal to 100% of the tax-Contention of petitioner that it had no concern with actual broadcasting of advertisements and that for the said purpose it had purchased airtime for its two television channels from a foreign based company, which was actually telecasting programmes and advertisements from its own equipment, and that such an activity on its part not related to broadcasting of the advertisement was not liable to sales tax-Validity-[Per Muhammad Iqbal Kalhoro, J: Section 3 of the Sindh Sales Tax Ordinance, 2000 read with Item 2 of the Schedule expressly levied tax on services of advertisements on television and radio -Advertiser would be imposed tax only when he was provided with services of broadcasting of his advertisements on television or radio-Only when an advertisement was broadcast, it would qualify as services being rendered to another person- Broadcasting of advertisements on television was merely a single link in the whole chain called taxable services in relation to advertisements on TV; every part/activity which lead to provision of such services would form its integral part and would be so considered in law -Petitioner did not consist of a single company engaged only in…

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