Law: Sales Tax Act, 1990

Section: 34

(a) Interpretation of statutes--- ----Word "shall"; interpretation of---Principles stated. Ordinarily, the word "Shall is mandatory and is in the nature of an order. However, the Courts have at times given this word a directory or permissive meaning depending upon the circumstances to which it is used and the object to be achieved by the Legislation. However, while construing the nature of the word "shall", the Courts search for the legislative intent. (b) Sales Tax Act (VII of 1990)---S.34 [as amended by Finance Act (IX of 1996)]---Imposition of additional tax mandatory for delay in payment of sales tax---Principles. Ordinarily, the word "shall" is mandatory and is in the nature of an order. However, the Courts have at times given this word a directory or permissive meanings depending upon the circumstances in which it is used and the object to be achieved by the Legislation. However, while construing the nature of the word "shall", the Courts search for the legislative intent. The legislative intendment has been manifested by the amendment made in section 34 of the Sales Tax Act---Prior to the Finance Act of 1996, the word used for the imposition of additional tax in section 34 was that the defaulter "shall be liable" to pay additional tax. This was an enabling provision empowering the authority concerned to impose additional tax. This power was, therefore, permissive and not mandatory. The Legislature has amended section 34 of the Sales Tax Act and replaced the words "shall be liable" by the word "shall". By this substitution, the legislative intent is clear. The discretionary power of imposing additional tax has been substituted by the mandatory direction to the authorities to impose the tax. When by the substitution made by the Finance Act of 1996 in section 34 of Sales Tax Act, the Legislative intent is clear; there is no need to take into consideration other factors. Mamy Beverages v. Naseem 1995 PTD 91 rel. JUDGMENT NASIR-UL-MULK, C.J.---By this single judgment, we propose to dispose of S.A.Os. Nos.25, 26 and 27 of 1999 which involve common questions of law. The three appeals arise from the single judgment of the Customs, Central Excise and Sales Tax…

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