DIGRI SUGAR MILLS LIMITED vs The ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE Ss

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DIGRI SUGAR MILLS LIMITED VS The ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE Ss. 11 & 33---assessment of tax and recovery of tax not levied or short levied or erroneously refunded---Offences and penalties---Scope---Penalty may only be contemplated in the demonstrable presence of culpable mens rea attributed to the person. Citation Name: 2023 PTD 825 KARACHI-HIGH-COURT-SINDHBookmark this Case DIGRI SUGAR MILLS LIMITED VS The ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE Courts ought to abstain from deciding larger questions, if a case could be decided on narrower grounds---It is preferred for the courts to confine determinations to questions pivotal for the determination of a case. Citation Name: 2023 PTD 825 KARACHI-HIGH-COURT-SINDHBookmark this Case DIGRI SUGAR MILLS LIMITED VS The ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE Ss. 11, 3(1a) & 2(25)---assessment of tax and recovery of tax not levied or short levied or erroneously refunded---Further tax---Registered person---Scope---Show-cause notice was issued to the applicant alleging supplies made to unregistered persons and consequent thereto recovery of further tax was sought---applicant acknowledged having made supplies to unregistered persons but based its defense on the argument that such persons were "liable to be registered" as defined in S. 2(25) of the Sales Tax act, 1990, therefore, such persons should be considered registered for the purposes of the act, and no further tax was due---Department did not agree with the defense and an order-in-original was passed---appellate Tribunal maintained the order-in-original---Validity---Section 3(1a) of the Sales Tax act, 1990, required that further tax should be charged, levied and paid where taxable supplies were made to an unregistered person---Section 3(1a) unequivocally imposed the obligation of further tax upon supplies to unregistered persons---Definition could not override the charging section of law---Definition given in a statute had to be construed so as not to be repugnant to the context and a mere definition by itself could not create any charge, liability and/or exception---applicant's reading of the law would have rendered S.3(1a) as redundant, but the law required that redundancy should not be attributed to legislation---Verbiage of S. 2(25) also contained a proviso precluding conferment of any benefit, in respect of supplies to persons liable to be registered---applicant was held liable to pay further tax under subsection (1a) of S.3 of the Sales Tax act, 1990, for supplies made to unregistered persons.

DIGRI SUGAR MILLS LIMITED vs The ADDITIONAL COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE Ss — 2023 PTD 825 KARACHI-HIGH-COURT-SINDH

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