Law: Sales Tax Act, 1990

Section: 34,8,2(41),2(46)(ii)(a),36

(a) Sales Tax--- ---Show-cause notice---Non-mention of sections of the Act---Effect---Sections of law are not to be seen rather substance of the matter is to be examined wherefrom the allegations are oozed out. (b) Sales Tax Act (VII of 1990)---S.34---Default surcharge---Evasion of tax---Non-material whether the evasion of tax was deliberate act of a person or it was otherwise, the liability of additional tax under S.34 of the Sales Tax Act, 1990 could not be avoided. (c) Sales Tax Act (VII of 1990)--- ----S.8---Tax credit not allowed---Inadmissible input adjustment---Appellant had claimed input adjustment on the item which did not fulfil the requirements of S.8 of the Sales Tax Act, 1990 as those goods did not involve in the furtherance of taxable activity---Goods like hotel bills and air tickets having nothing to do with the production of goods liable to sales tax nor the appellant was successful in proving the same before the lower forum or even at the appellate stage. (d) Sales Tax Act (VII of 1990)--- ----S.8---Tax credit not allowed---Premature adjustment input tax of gas bills---Validity --Adjustment of input tax out of tax period was allowable---Finding of Adjudicating Officer on the issue were set aside by the Appellate Tribunal, the charge was dropped accordingly. PLD 1998 SC 64 rel. (e) Sales Tax Act (VII of 1990)--- ----Ss. 2(41) & 2(46)(ii)(a)---Value of supply---Non-payment of sales tax on self-consumption of electricity in housing colony---Validity---Utility supplied to the housing colony of a manufacturing unit did not relate to taxable activity as defined by S.2(41) of the Sales Tax Act, 1990, as such the supply was taxable and liable to the sales tax. (f) Sales Tax Act (VII of 1990)--- ----Ss. 3(1)(a) & 36---Scope of tax---Furtherance of taxable activity---Sales of fixed assets and scrap---Sale of fixed assets as well as the scrap were liable to the sales tax as the same fell in the furtherance of taxable activity reducing cost of production or adding to the profit of the registered person---Charge alleged in the show-cause notice was maintained by the Appellate Tribunal. JUDGMENT SYED KAZIM RAZA SHAMSI, MEMBER (JUDICIAL).---This Sales…

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