| Citation(s) |
|---|
| 2026 SLG 18 2026 SLD 18 = 2025 SHC 2762 |
Const. P. 4649/2024
Present: Mr. Justice Agha Faisal Mr. Justice Muhammad Osman Ali Hadi
Date of hearing : 14.10.2025 Date of decision : 21.10.2025 Applicants/SRB : Through Malik Waseem Iqbal, Advocate in SSTRA Nos.70/2022, 2092/2023 a/w Mr. Zamir Ali Khalid, Commissioner (Legal), SRB M/s. Zulfiqar Ali Bhutto, Abdul Manan and Shamshad Ahmed, Advocates in SSTRA Nos.349/2019, 330/2020, 71, 73, 132/2021, 71, 95, 170, 174/2022, 54, 59, 60, 62, 76, 94, 168/2024 Applicant : M/s. Dada Sons, Karachi, through Mr. Muhammad Farhan, Advocate in SSTRA 100/2025
Respondents : Through Qazi Umair Ali and Mr. Muhammad Inzimam Shareef, Advocates in SSTRA 73/2021 Mr. Aqeel Ahmed, Advocate in SSTRA 62/2024 Mr. Shams Mohiuddin Ansari, Advocate in SSTRA 60/2024 Mr. Shoaib Noor, Advocate in SSTRA 54/2024 Mr. Najeebullah, Advocate in SSTRA 132/2021 Mr. Muhammad Farhan, Advocate in SSTRA 59/2024
Haji Abdul Raziq Khan & Brothers V/S Collector of Customs and Others Sindh High Court, Karachi
Law: Sindh Sales Tax on Services Act, 2011
Section: 2(71), 3, 9, 13, 15A, 23, 24, 24A, 24B, 43, 63
Summary:
The Court held that under the Sindh Sales Tax on Services Act, 2011 (prior to the 2021 amendment), sales tax on services was leviable only on registered persons. Unregistered service providers could not be assessed or made liable for sales tax for periods before their registration. The SRB had the power to compulsorily register such persons but failed to do so; therefore, tax liability could not be retrospectively imposed. However, unregistered persons could still face penalties, and tax could be recovered through withholding mechanisms where applicable. The Tribunal’s findings were upheld.
Sections Used:
Section 2(71), Section 3, Section 9, Section 13, Section 15A, Section 23, Section 24, Section 24A, Section 24B, Section 43, Section 63 — Sindh Sales Tax on Services Act, 2011
Sindh Sales Tax Special Procedure (Withholding) Rules, 2011 & 2014
2-Word Description:
Pre-Registration Liability