Sales Tax on Services (Case Laws)

Balochistan Revenue Authority Act (VII of 2015)---Ss.14 & 53---Balochistan Sales Tax Special Procedure (Withholding) Rules, 2018, Rr.1(4) & 3---Taxing statute---Applicability---Sale tax, recovery of---Scope---Petitioner company was aggrieved of notice issued Read More...

Balochistan Revenue Authority Act (VII of 2015)---Ss.14 & 53---Balochistan Sales Tax Special Procedure (Withholding) Rules, 2018, Rr.1(4) & 3---Taxing statute---Applicability---Sale tax, recovery of---Scope---Petitioner company was aggrieved of notice issued Read More...

Interpretation of statutes----Retrospective effect---Scope---Statute, which is procedural in nature, can operate retrospectively unless it affects an existing right on the date of promulgation or causes injustice or prejudice to a substantive right---If such statute Read More...

Balochistan Sales Tax on Services Act (VI of 2015)---Ss.2(14), 2(86), 6 & 7---Sales tax on service---Rate---Economic activity---Petitioners/contractors assailed notifications charging sales tax on services and goods---Validity---Rates in question gave two Read More...

Balochistan Revenue Authority Act (VII of 2015)---S. 4(2)(a) & Preamble---Prospective/Retrospective application of a new law---Scope---Payment of works, done in the year 1998, by the petitioner (government contractor) was finally decreed in the year 2019, Read More...

Section 5 of the Sindh Sales Tax on Service Act, 2011 (‘the Act’), being the charging provision, is a substantive provision and has a direct nexus to the taxable event provided for under Section 4 which particularly excludes the services of the employees Read More...

Delegated legislation—Delegated legislation is intended to enforce the law and advance the purpose of the underlying legislature, without overriding it and while minutiae could be filled in, the parent statute could neither be added to nor subtracted Read More...

Appellant assailed order passed by Commissioner on the ground that show cause notice was issued by Additional Commissioner but the order was passed by Read More...

Special procedure and tax withholding provisions---Retention and production of records and documents---Scope---Appellant assailed order passed Read More...

Taxable activity-Compulsory Registration-Scope---Appellant assailed order passed by Commissioner Inland Revenue whereby it was compulsorily registered---Validity- Appellant had purchased land/immovable property in the name of the registered partnership firm for use Read More...

Obligation to produce documents and provide information--Non-production of documents---Effect- Show-cause notice was issued to the appellant for providing construction services to Civil Aviation Authority under a contract- Despite Read More...

Show-cause notice issued to the appellant alleged that it being franchisee was required to declare its true sales but such information was concealed which act was "tax fraud"--Additional Commissioner held the appellant liable for evasion of sales tax---Appeal Read More...

Assessment of tax, tax fraud, taxable service, scope of tax and allied matters, time manner and mode of payment, return---Non-mentioning of relevant provisions of law (subsections) in the show-cause notice---Effect----Show-cause notice issued to the appellant Read More...

Assessment of tax-Appeal to Commissioner (Appeals)-Decision in appeal-Examination of records, evidences-Duty of Commissioner (Appeals)-Scope-Show-cause notice issued to the appellant alleged that it being franchisee had deposited certain amounts in the Bank account Read More...

Punjab Revenue Authority, powers and functions of Validation--Scope-Show---cause notice issued to the appellant alleged that it being franchisee had deposited certain amounts in the Bank account of the franchiser on account of royalty and advertisement, Read More...

Sales tax on services --Person liable to pay tax Special provisions and tax withholding provisions Person withholding tax to be considered "person liable to pay tax" Retrospective effect of S.13(3) of Sindh Sales Tax on Services Act, 2011 Scope- Question before High Read More...

Fiscal statute-Construction of -- Effect of amendment in fiscal statute Principles - Interpretation of fiscal statute had to be made strictly and any doubts arising therefrom must be resolved in favour of Amendments introduced in taxpayer and even if two reasonable Read More...

Special procedure and tax withholding provisions---Joint and several liabilities of registered persons where tax unpaid---Scope---Appellant assailed the order passed by Commissioner whereby it was taxed---Validity---Commissioner was bound to have passed a goods Read More...

Limitation---Condonation of delay---Scope---Appellant sought condonation of delay in filing appeal---Validity---Nowhere in the impugned order it was mentioned or directed that the copy of the said order be transmitted to the appellant---Neither the copy of the Read More...

Words "Distributor, Sale, Supply Chain and Taxable Supply have not been defined in the Sindh Sales Tax on Services Act, 2011. Whereas all these words are Read More...

11. Now, for the purpose of understanding the meaning of the tariff heading 9845.0000 "supply chain management or distribution (including deliver) services" of Read More...

This Tribunal in its various Orders relying upon the various pronouncements of Superior Courts, held that penalty cannot be imposed without Read More...

It is noted that in this case, the default of non-filing of monthly returns pertains to 13 returns for the months of December 2014 to February Read More...

Conduct of Audit proceedings under S. 28 of the Sindh Sales Tax On Services Act, 2011---Application for grant of interim injunction- Scope---Exercise of discretion of Deputy Commissioner to make selection of taxpayer for audit-Reasons for such selection to be Read More...

Exercise of statutory powers by public functionaries---Exercise of discretion by public functionaries/public bodies---Scope---Law recognized no such thing as unfettered discretion and all discretionary powers, especially those conferred by statute, must be exercised Read More...

Sales Tax on services---Deduction of Sales Tax on advertisement services---Declaration and continuance of laws---Conflict of Federal and Provincial Laws after the Constitution (Eighteenth Amendment) Act, 2010)---Effect of Art.270AA(6) of the Constitution on Federal Read More...

Implied repeal, doctrine of---Applicability---Scope---Essential condition for implied repeal was that when a provision of a former statute was inconsistent and in conflict with the provision of a later statute and the two could not be reconciled or harmonized, so as Read More...

Appeal by Sindh Revenue Board----Government departments/functionaries---Statutory periods for filing of appeal---Scope----Government departments could not be extended different treatment in respect of legal provisions---Procedure provided Read More...

Delegated legislation----Tax could not be levied automatically through a delegated legislation until and unless it was leviable under the charging provision of the fiscal Read More...

Short payment of sales tax---Recovery of short paid amount along with default surcharge and penalty---Dispute between the petitioner (company owning certain television channels) and the tax department was over the issue of payment of Read More...

 Words and expressions in a given law were to be assigned simple, plain and easily deductible meaning for the purpose of understanding their scope and object.
Fiscal statute----Rules made in furtherance of fiscal statute----Where Read More...

Sales tax was an indirect tax, burden of which was to be borne by the end consumer---After such burden had been passed on to the end user and the amount was so collected, it became duty of the vendor to pass on the same to the government Read More...

The doctrine was applicable to proceedings under S.52 of the Punjab Sales Tax on Services Act, 2012.

The doctrine was applicable to proceedings under S.52 of the Punjab Sales Tax on Services Act, 2012.
Proceedings under S. 52 of the Punjab Sales Tax on Services Act, 2012.
Petitioner-taxpayer was issued a show cause notice (“the first notice”) Read More...

Petitioner company was aggrieved of notice issued by authorities and attachment of its Bank accounts.
Both Provisions of S.11-A of Sales Tax Act, 1990 and S.47-A of Sindh Sales Tax on Services Act, 2011, were identical in nature and effect and tax authorities Read More...

Registered person, was as a stock broker rendering, management services and advisory consultancy services---Receipts from various services declared in the final statement, on the basis of which Assistant Commissioner, issued a show-cause notice, confronting the Read More...

Interpretation of a charging provision in a fiscal statute, favourable to taxpayer is to be Read More...

Petitioners were related to construction industry in one way or the other and they were aggrieved of notices issued by authorities for recovery of tax under Tariff Heading Nos. 9807.0000, 9814.3000 & 9824.000 of Second Schedule, Sindh Sales Tax on Services Act, Read More...

Water and Power and Development Authority Act of 1958 Ss. 3, 21 & Preamble---Constitutional exemption of certain public property from taxation under Art. 165 of the Constitution---Property owned by, and in use of, Water and Power Development Authority Read More...

Taxable Service---Constitutional validity---Maintainability of a Constitutional petition against taxing/fiscal statutory provisions on ground of unreasonableness, hardship or being excessive or discriminatory vis-à-vis rate of said tax being different in other Read More...

(j) Sindh Sales Tax on Services Act of 2011---

S. 3---Constitutional of Pakistan, Art. 70 (4), Fourth Schedule, Federal Legislative List entry 53---Vires of Sindh Sales Tax on Services Act, 2011---Levy of taxes---Terminal taxes---Power of Read More...

Punjab Urban Immovable Property Tax Rules, 1958, Rr. 7, 11 & 10---Recovery of property tax---Valuation of property---Objections of taxpayers---Exemption---Adjudication of objections by authorities---Communication of reasons to taxpayer(s) Scope---Petitioner Read More...

Failure to pay Sales Tax---Words “knowingly” and “fraudulently” occurring in S.43, Sindh Sales Tax on Services Act, 2011---Meaning---Imposition of penalty---Taxpayer who was engaged in providing/rendering taxable services chargeable to Sales Tax was alleged Read More...

Suit before High Court--- Original Civil while trying a civil suit on its original side exercises same power as of a civil court as vested in District Judge in terms of S.7 of Sindh Civil Courts Ordinance, 1962--- Restrictions and qualification imposed in terms of Read More...

Constitutional petition---Maintainability---Sales tax on services---Show-cause notice, issuance of---Scope---Petitioner raised all the legal grounds including the one with regard to legality of show cause notice but could not succeed before the forums provided under Read More...

Levy of sales tax for short payment, default surcharge and penalty---Taxpayer was a registered person engaged in providing or rendering “Event Management Services---Allegation against the taxpayer was that he had provided Event Management Services but failed to Read More...

Fiscal statutes---Fundamentals---Taxing event is fundamental to all fiscal statutes---Such statutes are necessarily a manifestation or exercise of a taxing power constitutionally vesting  in appropriate legislature---Taxing event lies at the heart of such power Read More...

Concurrent taxing power---Scope---No concurrent taxing power in Pakistan---Only a division exists and there is no sharing of taxing powers---Concurrent legislative List does not contain any entry relating to a taxing power. Taxing event can be described as a levy Read More...

Term ‘existing laws’---Scope---Existing law had to be considered simply as a law in its own right and its pith and substance determined---If pith and substance was relatable to any entry on Federal Legislative List or the Concurrent Legislative Read More...

Vires of statute---Principle---If a challenge as to the vires of a statue fails on one ground that itself precludes a subsequent challenge on another Read More...

Levy of tax---Province, power of---National Finance Commission (NFC) Award---Object, scope and purpose---NFC Award makes recommendations under Art. 160(2) of the constitution regarding distribution between the Federation and the Provinces of tax revenues mentioned Read More...

Exception---Scope---“Exception” has to be given proper meaning and effect---To impute redundancy to even a statutory provision or to so interpret a statute that a part of it is rendered futile or nugatory is a strong thing---Such approach would be almost Read More...

Exception---Scope---Exception added to entry No. 49 of Federal Legislative List is not a ‘true’ exception, as such it is an independent provision in its own right and has two primary effect---Exception recognizes expressly on the Constitutional plane that a Read More...

Levy of taxes---Terminal taxes---Power of Provinces---Scope---Provisions of Sindh Sales Tax on Service Act, 2011, has encroached and directly trenched upon a legislative field reserved exclusively for the Federation---No doubt on the definitions as Read More...

Constitutional petition---Vires of provisions of Sindh Sales Tax Act, 2011 and Federal Excise Act, 2005---Suspension of judgment---Effect---Petitioner company assailed vires of levy of excise duties by Provincial Government---Validity---Power to impose a levy on Read More...

High Court judgment, specially in exercise of jurisdiction under Art. 199 of the Constitution, can operate at two levels: Firstly it operate in personam, i.e. in relation to persons party to petition and secondly it can have effect throughout the Province not only Read More...

Reference---Amount of default surcharge---Deletion---Factual controversy---Authorities were aggrieved of order passed by Appellate Tribunal, deleting amount of default surcharge---Validity---Question proposed by authorities did not arise from order passed by Read More...

(“impugned notification”)---Constitutional petition---Maintainability---‘Still head duty’, levy of---Levy of ‘still head duty’ had been extended by the impugned notification to Pakistan Made Foreign Liquor and Beer consumed outside the Province of Read More...

(“impugned notification”)---Freedom of trade, commerce and intercourse between different Provinces---Scope---‘Still head duty’ (excise duty), levy of ---By way of impugned notification ‘still head duty’ was extended to Pakistan Made Foreign Liquor and Read More...

Constitution of Pakistan, Federal Legislative List, Entry 44---Ethanol (spirit). Imposition of duty---Vires---Petitioners were license-holders engaged in business of extracting ethanol, commonly known as spirit and they were aggrieved of imposition of duty by Read More...

Terms used in statute---Principle---Rule of construction teaches that meaning of particular terms in a statute may be ascertained by reference to words associated with them in the statute---Where two or more words of analogous meaning are employed together in a Read More...

Punjab Liquor Import, Export, Transport and Possession Orders, Chapter 6, order 6.12(3)(f)---Ethanol (spirit), imposition of duty---Petitioners were license-holders engaged in business of extracting ethanol, commonly known as spirit and they were aggrieved of Read More...

Equality---Taxation---Imposition of tax/duty---Classification of persons---Scope---Legislature is competent to classify persons or properties into different categories subject to different rates of taxes---If same class of person is subjected to an incidence of Read More...

Ethanol (spirit), imposition of duty---Subsequent stage---Petitioners were license-holders engaged in business of extracting ethanol, commonly known as spirit and they were aggrieved of imposing of duty by Provincial Government---Plea raised by petitioners was that Read More...

Preamble of statute---Scope and object---Pre-amble to an Act is an introductory statement that explains purpose and underlying philosophy of that Act---Object of preamble is to clarify meaning or purpose of operative part of the text in case of any ambiguity or Read More...

Imposition of tax---Legislative power---Scope---Legislative cannot be estopped from issuing notification for the purpose of imposition of tax with a view to generate revenue keeping in view to generate revenue keeping in view its growing requirement to generate Read More...

Constitutional petition---Vires of statute---Presumption---Burden to prove---When vires of any statute are challenged, strong presumption as to legislative competence and validity of the statute is always attached---Burden is always on the person challenging vires Read More...

Insurance claim---Execution of decree---Decretal amount, calculation of---Insurance Tribunal decreed claim directing Insurance company to pay group claims along with liquidated damages---Insurance company, pending appeal, deposited decretal amount as security for Read More...

Assessment of agricultural income tax---Failure to deposit amount of assessed amount before filing appeal---Claim of the petitioner was that notice issued by Assessing Authority to him for filing of income return of total agricultural income for financial years Read More...

----“Tax”---Meaning---Tax was an obligation imposed by an Authority for “public purpose”.

----“Fee”---Meaning---Fee was a payment of obligation imposed on the rule of “quid pro quo” which would postulate that the Authority had to render some Read More...

Constitutional petition---Sales Tax on services---Change of name---Petitioner company was engaged in business of providing safe deposit locker services and was aggrieved of notice from authorities requiring to register itself and pay sales tax on its revenue income Read More...

Constitutional petition---Levy of sales tax on services---Telecommunication services---International incoming calls---Withdrawal of exemption---Show-cause notice, issuance of---Petitioner company was providing telecommunication services and had shown its inability Read More...

Constitutional petition---Levy of sales tax on services---Telecommunication services---Withdrawal of exemption---Alternate remedy---Factual controversy---Petitioner company was providing telecommunication services and assailed notification imposing sales tax on Read More...

Recovery of duty short-levied or erroneously refunded, etc.---Limitation---Damaged stock---Show-Cause Notice for recovery of duty---Contravention was related to production of 1996 which had been acknowledged by the department in their letter dated 9-2-2004---No Read More...

---Power of adjudication---Limitation---Show-Cause Notice was issued on 13-5-2004---On the date of order departmental official was mandated to finalize the assessment within 45 days of the issuance of Show-Cause Notice---No extension was granted which was clear from Read More...

Failure to comply with requirement as to time does not render an act invalid---Limitation---Application of---Article 254 was only applicable to act or thing required to be done by the Constitution and does not apply to ordinary Read More...

---Cement---Damaged stock---Laboratory report---Show-Cause Notice on the basis of incorrect laboratory report---Validity---Test report in respect of samples A & C had same Chemical constituents as sample B which the customs report mentioned that same might Read More...

Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997), S.21---Human rights case---Exercise of jurisdiction under Art. 184(3) of the Constitution by the Supreme Court on new paper clippings regarding unprecedented load-shedding in Read More...

Constitutional petition---Delegation of power---“Cess” and “tax”---Distinction---Petitioner assailed Notification SO(T) M&MD 8-21/2011, dated 30-4-2013, issued by Punjab Government, whereby an amendment was made in Schedule available in Excise Duty on Read More...