Law: Sales Tax Act, 1990

Section: 2(12),3,3(1A),23,26

Sales Tax Act (VII of 1990)----Ss.3 ,  2(12)--Sales tax--Further tax--”Goods”--Scope--Appellant declared supplies made to unregistered person on which sales tax at the rate of 17% was correctly paid but further tax leviable under S.3(1A) of Sales Tax Act, 1990, was neither charged nor paid thereon-- Commissioner Inland Revenue adversely adjudged the liability as to further tax--Validity--Appellant had supplied “Zinc Ingots” to the Master of Mint, Finance Division, Government of Pakistan--Master of Mint was engaged in manufacturing of coins which was “money”-- “Money “ was excluded from the very purview of “Goods “ as defined in S.2(12) of Sales Tax Act, 1990--Master of Mint was not required to be registered in the sales tax, hence, did not fall under the scope of S.3(1A) of Sales Tax Act, 1990--Impugned order, being not maintainable, was annulled. 2005 SCMR 492; 2007 PTD 67; PLD 2001 SC 340 and 2006 SCMR 129 ref. ORDER: WAJID AKRAM, ACCOUNTANT MEMBER:---.--- The titled appeal filed at the instance of the registered person is directed against Order-in-Original No. 73/2018 dated 26-12-2018 passed by the Commissioner Inland Revenue (Zone-I) Gujranwala on the grounds as set out in the memo, of appeal as well as the others as taken at the bar. 2. Briefly facts of the case are that the OIR observed from the data retrieved from Data Base Administration System and scrutiny of information available in Sales Tax Returns for March-2018 to June-2018 that appellant has declared supplies worth Rs.38,854,829/- made to unregistered person on which sales tax at the rate of 17% has correctly been paid but further tax at 2% leviable under section 3(1A) has not been charged and paid thereon. The appellant is therefore; called upon show- cause notice dated 23-10-2018 as to why further tax of Rs.745,697/- may not be recovered under section 11(2) OF the Act along with default surcharge under section 34 and as to why penalty under sections 33(1 )(a) and 33(5) ibid may not be imposed in violation of sections 3(1A), 23 and 26 of the Act. In response, the appellant contested the charges levelled in impugned show-cause notice on the basis that imported “Zinc Ignots” has been supplied…

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