Law: Sales Tax Act, 1990

Section: 33,34,7,46

(a) Sales Tax Act (VII of 1990)---Ss. 33, 34 & 46---Additional tax---Appeal to Appellate Tribunal--­Appellate Tribunal, while setting aside the order of levy of additional tax and imposition of penalties by the Department, after the assessee had failed in convincing the Tribunal of their arguments against such levy etc., ought to have assigned reasons in view of Ss. 23 & 24, Sales Tax Act, 1990. (b) Sales Tax Act (VII of 1990)--- ----Ss. 3, 7, 33 & 34---Bagasse consumed as in-house fuel by the assessee, a sugar manufacturer, was chargeable to sales tax---Default in payment of such levy---Charge of additional tax, and imposition of penalties---Validity---High Court restored the order-in-original imposing additional tax as well as penalties with the direction that amendments made in S.34, Sales Tax Act, 1990 being the beneficial one and made during pendency of proceedings, Revenue shall charge the additional tax at the rate which was applicable in similar cases. JUDGMENT NASIM SIKANDAR, J.---By this judgment we intend to dispose of departmental appeals Customs Appeals Nos. 85, 86, 87, 88, 89, 90, 91, 92, 93, 94 and 99 of 2002. 2. The respondents are manufacturers of sugar. They were served with show-cause notices wherein it was inter alia stated that under 6th Schedule of the Sales Tax Act, 1990 as amended for the financial year, 1996-97 no exemption from sales tax on supplies as well as in-house use of bagasse was available and, therefore, by default in payment of the levy they had contravented the provisions of sections 3, 6, 7, 22, 23 and 26 of the Sales Tax Act, 1990 they were also called upon to show cause as to why penal action should not be taken against them under section 33 of the Act. 3. The replies submitted by the respondents did not find favour with the Department which was of the view that the issue of taxability/chargeability of begasse consumed to house by Sugar Mills stood resolved in terms of the judgment of the Hon'ble Supreme Court of Pakistan in re: Sheikhu Sugar Mills Limited v. Government of Pakistan, (2001 PTD 2097). As far the value of the bagasse no consumed for the purpose of levy of sales tax, different rates were adopted…

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