Law: Sales Tax Act, 1990

Section: 11,3(1A),2(25)

(a) Sales Tax Act (VII of 1990)---Ss. 11, 3(1A), 2(25)--Assessment of tax and recovery of tax not levied or short levied or erroneously refunded--Further tax-- Registered person--Scope--Show-cause notice was issued to the applicant alleging supplies made to unregistered persons and consequent thereto recovery of further tax was sought--Applicant acknowledged having made supplies to unregistered persons but based its defense on the argument that such persons were “liable to be registered ” as defined in S. 2(25) of the Sales Tax Act, 1990, therefore, such persons should be considered registered for the purposes of the Act, and no further tax was due--Department did not agree with the defense and an order-in-original was passed--Appellate Tribunal maintained the order-in-original--Validity--Section 3(1 A) of the Sales Tax Act, 1990, required that further tax should be charged, levied and paid where taxable supplies were made to an unregistered person-- Section 3(1A) unequivocally imposed the obligation of further tax upon supplies to unregistered persons--Definition could not override the charging section of law--Definition given in a statute had to be construed so as not to be repugnant to the context and a mere definition by itself could not create any charge, liability and/or exception--Applicants reading of the law would have rendered S.3(1A) as redundant, but the law required that redundancy should not be attributed to legislation--Verbiage of S. 2(25) also contained a proviso precluding conferment of any benefit, in respect of supplies to persons liable to be registered--Applicant was held liable to pay further tax under subsection (1A) of S.3 of the Sales Tax Act, 1990, for supplies made to unregistered persons.  Chairman Federal Board of Revenue v. A1 Technique Corporation of Pakistan Limited PLD 2017 SC 99 and Suresh Kumar v. Federation of Pakistan PLD 2020 Sindh 62 rel. Zak Re Rolling Mills (Pvt.) Limited v. Appellate Tribunal Inland Revenue and others 2020 SCMR 131; Tandlianwala Sugar Mills Limited and others v. Federation of Pakistan and others 2001 SCMR 1398; Collector of Sales Tax v. Messrs Mega Tech (Pvt.) Ltd. 2005 SCMR 1166 and Iqbal Hussain…

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