Law: Sales Tax Act, 1990

Section: 2(9),47

Law: Filing of Monthly Return Rules, 1996

Section: 5(3)(4)

Sales Tax Act (VII of 1990)---Ss. 2(9) & 47---filing of Monthly Return Rules, 1996, R.5(3)(4)---. S.R.O. No. 55(I)/96, dated 1-7-1996---S.R.O. 732(I)/98, dated 1-7-1998---Words "due date"---Applicability---Deposit of sales tax through bank demand draft---Assessee deposited sales tax through two bank demand drafts in prescribed bank before due date---Penalty was imposed upon assessee as bank demand drafts were encashed beyond due date---Plea raised by assessee was that though R.5 of Monthly Return Rules, 1996, had been amended after due date but its benefit could have been given to assessee---Validity---Instrument having been purchased in favour of Revenue, intervening time of its clearance by concerned bank did not matter at all---It was only the personal cheque of individual that required clearance by bank on which it had been drawn---Banking instruments like pay order. or a bank draft did not need any such clearance---Tendering bank drafts along with return before due date was not. disputed and clearance of drafts was only a matter between two banks---Assessee 'having tendered bank demand drafts to designated branch before due date was absolved of its legal liability towards Revenue---In case bank demand drafts were not cleared by the issuing banker, assessee as tax payer would have been liable to pay additional tax till the time of actual payment of tax---Amendment in the rule had stated correct legal and factual position---Orders of Authorities as well as of Appellate Tribunal were set aside and assessee, held, was not liable for additional tax, penalty or any other penal action---Appeal was allowed in circumstances. ORDER This further appeal under section 47 of the Sales Tax Act, 1.990 seeks to challenge an order of the Customs, Excise and Sales Tax Appellate Tribunal, Lahore, dated 4-7-2001. 2. The appellant during the relevant tax period, i.e., October, 1996 was engaged in cotton ginning business. In the course of its audit by the Sales Tax Department it was found that the appellant-firm deposited sales tax late on the two returns filed for the month of October, 1996. Before the Adjudicating Authority, the assessee claimed that both returns were…

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