| Case ID |
450f9032-39a7-475a-99ba-e326a5e7ee8b |
| Body |
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| Case Number |
Sales Tax Reference No. 59 of 2007 |
| Decision Date |
Jun 26, 2008 |
| Hearing Date |
May 08, 2008 |
| Decision |
The court ruled in favor of the applicant, Digri Sugar Mills Ltd., stating that the supplier is not liable to pay further tax under section 3(1-A) of the Sales Tax Act, 1990 when supplying to registered persons or those liable to be registered. The amendment to the law was overlooked by the learned Tribunal, and since the provision was declared unconstitutional, the recovery proceedings initiated by the Sales Tax Department were deemed mala fide. The court emphasized that the officials of the Sales Tax Department should have been aware of the amendments made in the Act. |
| Summary |
In the case of Sales Tax Reference No. 59 of 2007, the Sindh High Court addressed the issue of whether a supplier is liable to pay further tax under section 3(1-A) of the Sales Tax Act, 1990 when supplying taxable goods to unregistered persons. The applicant, Digri Sugar Mills Ltd., argued that they had supplied goods only to registered persons or those liable to be registered. The court found that the amendment to the Sales Tax Act, which imposed such a liability, had been declared unconstitutional, and thus, the applicant was not liable for further tax. This case highlights important aspects of tax law, particularly concerning the responsibilities of suppliers and the implications of legislative amendments. The ruling underlines the necessity for tax authorities to be aware of current laws and amendments, preventing unjust penalties against compliant businesses. |
| Court |
Sindh High Court
|
| Entities Involved |
DIGRI SUGAR MILLS LTD.,
ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE (ADJUDICATION)
|
| Judges |
MRS. YASMIN ABBASEY,
ARSHAD NOOR KHAN
|
| Lawyers |
Ms. Danish Zuberi,
Shaukat Ali Qureshi
|
| Petitioners |
DIGRI SUGAR MILLS LTD., KARACHI
|
| Respondents |
another,
ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE (ADJUDICATION), HYDERABAD
|
| Citations |
2008 SLD 252,
2008 PTCL 574,
2008 PTD 1673,
(2008) 98 TAX 231
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
2,
2(25),
3(1A)
|