Law: Sales Tax Act, 1990

Section: 2(25),3(1A),14,19

(a) Interpretation of statutes--- -----Fiscal statutes---Such enactments have to be given their literal meaning---No inference can be made especially when none is required---If any inference is required, then same should be to the benefit of taxpayer. (b) Sales Tax Act (VII of 1990)---Ss. 2(25), 3(1-A), 14 & 19---Registered person---Further tax, levy of---Exception ---Proof---Registration compulsory under S.14 read with S.19 of the Sales Tax Act, 1990---Inference would be that tax would be liable and payable by those persons or companies, who are registered or liable to be registered---Recovery of further tax from persons other than a registered person under S.3(1-A) of the Act---Such provisions would enable same to persons falling within definition of S.2(25) of the Act--­Assessee claiming exemption has to show that persons to whom taxable supply is made is registered or liable to be registered under the Act. ORDER ZAHID KURBAN ALVI, J.---Several petitions have been filed whereby the imposition of one per cent and 3% further tax under section 7(ii)(a) of the Finance Act, 1998 and section 16(2) of the Finance Act, 1999 is challenged. By these Acts the new tax was incorporated as section 3 (1-A) of the Sales Tax Act. This has been challenged as un­Constitutional and without jurisdiction. The petitioner has made the following prayers:--- (i) declare 1% and 3% "further tax imposed by section 7(ii)(a) of the Finance Act, 1998 and section 16(2) of the Finance Act, 1999 by introducing the same as section 3(1-A) of the Sales Tax Act, 1990 and the latter to be un-Constitutional, unlawful, without jurisdiction, mala fide, void ab initio and of no legal effect: (ii) hold declare that the petitioner is not liable to pay the 1% and 3% "further tax" under section 3(1-A) of the Sales Tax Act, 1990: (iii) direct the respondents to issue refunds and additional refunds alongwith mark-up till the date of payment of the amounts already recovered by the respondents from the petitioner as "further tax" under section 3(1-A) of the Sales Tax Act, 1990. (iv) pending disposal of the main petition restrain the respondents from recovering any "further tax" under section 3(1-A) of the…

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