Law: Sales Tax Act, 1990

Section: 44, 44(2), 3(2)

The close perusal of section 3(2) of the Act of 1958 envisages that the UIP Tax shall be charged and paid on the basis of annual rental value of a building and land in the rating area. The definition of rating area as provided under the Act of 1958 (restricted to urban area only) apparently is in conflict with the section 44 of the Act of 2013 (which is the entire territorial limit of the tehsil). One of the rules used in reading an Act of Parliament is that a word or expression defined in the Act must be given the same meaning throughout the Act. The rule, however, has less force when the word occurs in different sections of the Act. A definition of a term in a statute is merely declaratory in nature and should not be unnecessarily inflicted where it does not fit in with the subject or context. The effect of section 44 of the Act of 2013 on the charging section 3(2) of the Act of 1958 is that through a deeming clause, the entire tehsil is now a rating area, therefore, the rating area as occurred in section 3(2) should be read as the entire tehsil. Indeed, it is settled law that the effect of a…

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