Law: Sales Tax Act, 1990

Section: 3,11

(a) Sales Tax Act (VII of 1990)----Ss. 3 & 11---Delay in furnishing Sales tax payments---Penalty under S.11 of the Sales Tax Act, 1990, imposition/recovery of--- Scope---Department imposed penalty on the registered person for not depositing sales tax for a period of one and half years---Contention of the appellant (registered person) was that the penalty could not be recovered under S. 11 of the Sales Tax Act, 1990---Validity--- Commissioner (Appeals) had rightly turned down the said contention / objection as “sales tax” included “penalty” which could only be assessed and recovered under S. 11 of the Sales Tax Act, 1990--- However, Tribunal reduced the penalty to 10% of amount imposed by Authorities below as penalty---Appeal filed by the registered person against imposition of penalty for late payment of sales tax was disposed of accordingly. Shahbaz Hussain v. Federation of Pakistan 2023 PTD 30 and Messrs Fiza Noor Creations (Pvt.) Ltd. v. CIR, RTO Faisalabad S.T.A. No. I021/LB of 2021 ref. (b) Sales Tax Act (VII of 1990)-----Ss. 3 &11---Late payment of sales tax---Penalty, imposition/recovery of---Scope---Mens rea of taxpayer, absence of---Willful default--- Department imposed penalty on the registered person for not depositing sales tax for a period of one and half years---Contention of the appellant (registered person) was that imposition of penalty in absence of proving any mens rea was not tenable---Held, that the default ,in the present case, in making sales tax payments was for tax periods spanning almost one and half year and for a prudent mind it was not hard to understand that appellant committed willful default---Intention of the party was wholly irrelevant since there was a clear violation of the statutory provisions repetitively---Appellant had willfully violated statutory provisions with impunity---However, the Tribunal reduced the penalty to 10% of amount imposed by Authorities below as penalty--- Appeal filed by the registered person against imposition of penalty for late payment of sales tax was disposed of accordingly. (c) Sales Tax Act (VII of 1990)---Ss.3 & 11---Delay in furnishing Sales tax payments---Willful default---Penalty,…

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