SHC upholds order by Appellate Tribunal Sindh Revenue Board

KARACHI: An appellate bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Arshad Hussain Khan up-holding an order of Appellate Tribunal, Sindh Revenue Board (SRB) in a Reference Application filed under section 63 0f the Sindh Sales Tax (SST) on Services Act 2011 observed that” in the absence of determination of any sales tax liability through Assessment under section 23 of the SST on Service Act 2011, which may become due towards taxable services  such penalty in terms of Table 3 of Section 43 cannot be imposed”.

The reference application was filed by Assistant Commissioner, AC Unit21, SRB against Television Media Network against a reference decided by the Appellate Tribunal dated 11.01.2016 on law point that “whether the Appellate Tribunal, Sindh Revenue Board was justified to delete the penalty at serial number 3 of the table under Section 43 of the Sindh Sales Tax Act, 2001 for non-payment of sales tax due”.

The tribunal has held that penalty imposed by the Appellate Tribunal whereas the penalty of rupees 210,000 imposed by the department in terms of Table 3 of Section 43 has been deleted for the reason that no Assessment Order passed under section 23 of the SST Act 2011 by the Assessing Officer whereby the liability of the tax could be determined. The appellate bench holding the imposition of penalty as unjustified set aside the same which was now also upheld by the Court.

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