Law: Sales Tax Act, 1990

Section: 34,36,47

Sales Tax Act (VII of 1990)---Ss. 34, 36 & 47---Short payment of Sales Tax---Appeal to High Court---Issue of sale of scrap was not considered by the Tribunal with seriousness it deserved---Issue of wastage of concentrate to calculate total production per unit was also intermingled with the issue of disposal of scrap---Mere fact that scrap comprised of material on which earlier sales tax had been paid, did not, by itself, exempt it from the levy of sales tax, if otherwise its disposal amounted to taxable activity and taxable supply in furtherance of business of registered person---Issue in hand only revolved around the disposal of scrap and levy of sales Tax thereon---Since issue of taxability of scrap was not looked into in the manner it required, impugned order of Tribunal to that extent was set aside---Tribunal would re-consider and rule upon the issue of levy of sales tax on the scrap disposed of by registered person during the year concerned---Tribunal, if so required by any of the parties, would rule upon admissibility of input tax in case they would approve of sales tax on it. Collector of Customs, Central Excise and Sales Tax, Karachi (West) v. Novartis Pakistan Ltd. 2002 PTD 976 and Messrs Mayfair Spinning Mills Ltd. Lahore v. Customs, Excise and Sales Tax Appellate Tribunal, Lahore and 2 others PTCL 2002 CL 115 ref. JUDGMENT NASIM SIKANDAR, J.---This further appeal under section 47 of the Sales Tax Act, 1990 seeks to challenge an order of the Customs, Excise and Sales Tax Appellate Tribunal (for short "The Tribunal"), dated 15-11-2001. 2. On the basis of an audit report prepared by the Audit Wing of the Department, proceedings against the respondent, Messrs Adil Beverage Company (Pvt.) Limited, were started and a contravention report alleging short payment of sales tax for the three years involving an amount of Rs.32,72,051 was prepared. That amount was calculated with reference to and on the basis of difference of units of concentrate used for production of various brands of aerated beverages. Also it was found that the registered person had failed to pay sales tax to the tune of Rs.82,850 on disposal of scrap valued at Rs.460,281 removed/supplied…

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