Law: Sales Tax Act, 1990

Section: 11,11(3),11(4),33(5),34,45B,47,47(5)

Law: Customs Act, 1969

Section: 32

Mis-declaration—Assessment of tax and recovery of tax not levied or short levied or erroneously refunded—Scope—Respondent imported mobile phones and paid-duty at the rate of Rs. 250/- per piece whereas the Sales Tax Department was of the view that the mobile phones attracted higher duty—Department issued a show cause notice on the issue of misdeclaration—Validity—Purported allegation of misdeclaration was in fact within the domain and jurisdiction of Collectorate of Customs, which, in case of any controversy, could have retained the consignment/goods for further inquiry or chemical test and determine the duty provisionally till disposal of the inquiry or re-assessment— Dispute of classification was never raised at customs level—Exercise undertaken by the department was a futile attempt in absence of any concrete resolution of misdeclaration—Reference application was dismissed. ORDER: This Special Sales Tax Reference Application under section 47 of Sales Tax Act, 1990 was filed on the following questions, as proposed:- 1. Whether on the facts and circumstances of the case learned Tribunal was justified to hold departmental order and Commissioner Inland Revenue (Appeals-I) Karachi’s order which upheld the departmental action, as void when subsections (3) and (4) of Section 11 of the Sales Tax Act, 1990 provides for recovery of sales tax short levied due to collusion or deliberate act or inadvertence, error or mis-construction? 2. Whether on the facts and circumstances of the case the learned Tribunal was justified to hold departmental order and Commissioner Inland Revenue (Appeals-I) Karachi’s order upholding departmental action for recovery of sales tax levied, as void when the respondent did not declare the true specifications of their Cell phones as Smart Phones holding touch screen at import stage, where sales tax was chargeable at Rs.500/- per smart phone under SRO 460(I)/2013 dated 30.05.2013? A show-cause notice was issued on 10.10.2013 under section 33(5) read with Section 34 of the Sales Tax Act, 1990 on the assertion that the respondent imported smart cellular phones and have paid Rs.250/- for each mobile set as sales tax instead of Rs.500/- for each…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492