Law: Sales Tax Act, 1990

Section: 7,47,66

(a) Sales Tax Act (VII of 1990)--- ---S.47---Appeal to High Court---Question of law not arising out of Tribunal's order---Non-formulation of any such question by Revenue---Effect---High Court declined to entertain appeal in circumstances. (b) Sales Tax Act (VII of 1990)---Ss. 7 & 66 [as amended by Finance Ordinance (III of 1998)]---Adjustment of input tax out of tax period, claim for---Imposition of additional tax and penalty for finding such claim to be out of tax period---Validity---Provisions of S.7 of Sales Tax Act, 1990 earlier to insertion of words "during the tax period" by Finance Act, 1998 were somewhat ambiguous---Such procedural lapse would not entail imposition of additional tax and penalty---Assessee paying millions of rupees as tax could not be presumed to have made such error deliberately---Such error had not resulted in any direct loss to revenue or an immediate benefit to the assessee---Entitlement of assessee to claim input tax had not been challenged as a fact---High Court dismissed appeal in circumstances. (c) Taxation--- ----Penalty provisions in a fiscal statute---Such provisions should not be invoked against a taxpayer merely for the reason that doing so would be legal. JUDGMENT NASIM SIKANDAR, J.---This appeal by the Revenue under section 47 [Appeal to High Court] of the Sales Tax Act, 1990 seeks to challenge an order of the Customs, Excise and Sales Tax Appellate Tribunal, Lahore dated 12-9-2002. 2. The Additional Collector-I, Collectorate of Sales Tax and Central Excise, Lahore on 30-6-2000 by way of a show-cause notice confronted the respondent, a registered person engaged in manufacturing and marketing of shaving blades with a number of charges including charge No.3 which reads as under:--- "The unit had claimed input tax adjustment to the tune of Rs.11,022,438 made during the tax period from 8/98 to 9/99 which was found "out of tax period". Thus the same is recoverable from them." 3. The respondent made the following reply to the charge:- "(i) That section 66 of the Sales Tax Act, 1990, after amendment made vide Finance Act, 1998, w.e.f. 1-7-1998, provides expressly that in the cases where refund of input adjustment, if…

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