Law: Sales Tax Act, 1990

Section: 11,33,33(1),33(5),34

This case regarding penalties and default surcharges under the Sales Tax Act, 1990 .Key Points:Tax Period: The cases pertain to the tax period from February 2016 to December 20171.Issue: Taxpayers were penalized under Section 33(1) and (5) and charged an additional surcharge under Section 34 of the Sales Tax Act, 1990, due to late filing of income tax returns1.Taxpayer's Argument: The taxpayer argued that the failure to pay was not "willful," and the appellate tribunal agreed, relieving them of the penalty and surcharge1.Amendment to Section 34: The court notes that an amendment was made to Section 34 of the Act in 2005 via the Finance Act, adding the phrase "whether willfully or otherwise," potentially making the default surcharge a strict liability1.High Court Decision: The High Court's judgment did not consider the 2005 amendment to Section 34 and relied on case law that predated the amendment1.Court's Ruling on Section 34: The court set aside the High Court's view on Section 34, declaring that it is a strict liability provision, meaning that a default surcharge is applicable whether the default was deliberate or unintentional1.Section 33 Remand: The court noted the High Court did not discuss Section 33 of the Act, 1990, and remanded the case to the High Court to determine whether Section 33 should also be interpreted as a strict liability clause1.Outcome: The appeals were allowed, with the court holding that Section 34 of the Act regarding default surcharge is a strict liability clause, while the High Court was directed to review Section 33 for a fresh decision ORDER:MR. JUSTICE SYED MANSOOR ALI SHAH:---.---(1). These cases pertain to the tax period: February 2016 to December 2017. The facts are that due to certain reasons the respondent taxpayers filed late income tax return, as a consequence a penalty under Section 33(1) and (5) as well as additional surcharge under Section 34 of the Sales Tax Act, 1990, (‘Act, 1990’) was imposed on them through the assessment order 13.06.2016. The respondent taxpayer filed an appeal against the said assessment order, which was allowed dated 09.09.2016, holding that the taxpayer is not liable to pay the penalty or…

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