Law: Sindh Sales Tax on Services Act, 2011

Section: 2(72),2(79),3,5,6,8,44,47,57,61,62,Secon d Schedule

SINDH SALES TAX ON SERVICES ACT, 2011 (XII OF 2011)---Sections: 2(72), 2(79), 3, 5, 6, 8, 44, 47, 61 ,  62 - Second Schedule read with sections 3 ,  8 - Proviso to section 5(1)(a) - Value of taxable service - Open market price - Recovery of tax not levied or short levied - Show Cause Notice issued to applicant - Passing of order holding applicant liable to pay assessed amount with penalty - Appeal decided against the applicant by the Commissioner Appeals - Second appeal before Appellate Tribunal met the same fate - Reference to High Court - FACTS Brief facts leading to the present controversy under Reference are that a show-cause notice was issued by an officer of Sindh Revenue Board (SRB) to the applicant on 25.04.2016 for the tax period July 2013 to December 2014. Applicant responded to the said show-cause notice by replying in detail on 10.05.2016 which ended up in passing Order-in-Original dated 01.06.2016 under sections 44 and 47 of Sindh Sales Tax on Services Act, 2011 in terms whereof the applicant was liable to pay the assessed amount with penalty. The remedy of appeal was then exhausted before the Commissioner Appeals under section 57 of the Act, 2011 which appeal was decided on 12.08.2016 against the applicant. Second statutory appeal was then filed under section 61 before the Tribunal which too passed order under section 62 of the ibid Act on 07.11.2016 against the applicant. Consequently and ultimately this Reference was filed impugning the order of the Tribunal under reference jurisdiction of this Court. ARGUMENTS Principal argument of applicant is that when more specific and exclusive entry in the shape of 9824.0000 as Data Processing and Provision of Information Services is available recourse to a Tariff Heading (9805.9200) to the Second Schedule is not warranted. DECISION (A.) Section 5 itself is clear that it is the value of service which is taxable and not the full value of generated invoices shall be taken as value of services rendered - Tribunal considered that since no rule is available for the category of “Business Support Services” full value of generated invoices shall be taken as the value of services rendered or provided in…

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