Law: Sales Tax Act, 1990

Section: 2(44),23,34,46

Sales Tax Act (VII of 1990)---Ss. 2(44), 23, 34 & 46---Appeal to Appellate Tribunal---Late payment of sales tax---Collector, who was seized of the matter, vide impugned order found that appellant company had entered into an agreement with the buyers for the supply of goods and received part of the value of the supply in advance, but did not issue sales tax invoices at the time of receipt of those advances---Appellant did not deposit tax in the tax period In which those advances were received---Provisions of S.2(44) of Sales Tax Act, 1990 had provided that the time of supply was either the time of delivery of goods or receipt of payment whichever was earlier in respect of supply---Under provisions of S.23 of Sales Tax Act, 1990, the sales tax invoice was to be issued at the time of supply of goods---Contention of appellant was that late payment of sales tax was not wilful, but was the result of the controversy arising out of the decision of the superior courts giving different interpretations of the word `payment', the time of supply given in S.2(44) of Sales Tax Act, 1990, the imposition of additional tax and thus penalty imposed was not justified---Controversy was regarding the interpretation of the term supply, and time of supply, which ultimately was laid to rest by dictum laid down in 2004 PTD 1179---No dispute existed with regard to the payment of principal amount of sales tax---Only dispute was regarding the late payment---Since the late payment of sales tax by the appellant was not wilful, but was due to the controversy arising out of the decision of the superior courts giving different interpretations of the term "time of supply", imposition of additional tax and penalty on appellant, was not justified---Impugned orders were set aside, in circumstances. 1999 PTD 3907; D.G. Khan Cement v. Federation 2004 PTD 1179; Ghandhara Nissan Diesel Ltd. v. Sales Tax Department 2004 PTD 2771 and 2004 PTD (Trib.) 2539 rel. JUDGMENT ABDUS SALAM KHAWAR (MEMBER (JUDICIAL/CHAIRMAN).---Being aggrieved of the Order-in-Appeal No.42 of 2007, dated 2-3-2007 passed by the Collector, Customs, Sales Tax and Federal Excise. (Appeals), Lahore, this appeal has been preferred by…

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