Law: Sales Tax Act, 1990

Section: 31(A),71

(a) Sales Tax Act (VII of 1990)-- Ss. 3(1A) 71-SRO No. 1125(I)/2011, dated: 31-12-2011-SRO No. 491(I)/2016, dated: 30-06-2016-Further tax-Special procedure-Supplies to un-registered persons-Scope-Appellant was imposed upon further tax for its failure to pay further tax @ 2% of the value of supplies made to tin-registered persons in terms of S. 3(1A) of Sales Tax Act, 1990-Adjudication proceedings culminated in passing of an order adjudging recovery of further tax which was challenged before Commissioner Inland Revenue (Appeals) CIR (Appeals) who rejected the same-Contention of appellant was that AC1R had erred in law while charging further tax inspite of the fact that its supplies fell under five zero-rated sectors which were governed by SRO No. 1125(I)/2011, dated: 31-12-2011-Validity-Supplies made to un-registered persons could not be subjected to levy of further tax in view of clause (iii) of Sr. No: 1 of Table-II given under SRO No. 491(I)/2016, dated: 30-06-2016, which provided that supplies to registered or un-registered persons of the said five sectors shall be charged at the rate of zero percent-Further tax was a specie of sales tax, therefore, if sales tax was zero as per zero rating facility granted through special notification for five export oriented sectors then further tax was also zero even in the case where supply of zero-rated goods was made to un-registered persons-No further tax could be imposed-Appeal was accepted and the impugned show-cause notice as well as consequent orders of both the authorities were set aside. S.T.A. No. 280/LB/2019 and 2018 PTD 2364 ref. (b) Sales Tax Act (VII of 1990)--Ss. 3(1A) 71-SRO No.1125(I)/2011, dated: 31-12-2011-SRO No. 491(I)/2016, dated: 30-06-2016-Further tax-Special procedure- Scope-Section 71 of the Sales Tax Act, 1990 overrides all other provisions of the Sales Tax Act, 1990, including S.3 thereof, therefore, further tax cannot be imposed on the five sectors zero-rated goods. (c) Interpretation of statutes---Non-obstante clause-Scope-Non-obstante clause is a legislative tool employed to give overriding effect to certain provisions over some contrary provisions that are to be found in the same enactment…

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