DERA TONIGHT, MAKKI RESIDENCY, OLPER ROAD, ROHRI, DISTRICT SUKKUR vs COMMISSIONER (APPEALS-II), SINDH REVENUE

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DERA TONIGHT, MAKKI RESIDENCY, OLPER ROAD, ROHRI, DISTRICT SUKKUR VS COMMISSIONER (APPEALS-II), SINDH REVENUE BOARD, KARACHI Ss. 24, 24B & 43---Provisions relating to registration, contravention of---Penalty, imposition of---Scope---Plea of the appellant was that two penalties were provided in terms of serial No.1 under S.43 of Sindh Sales Tax on Services Act, 2011 ('the Act 2011') and appellant was entitled to the lesser penalty amongst the two provided in terms of serial No.1 under S.43 of the Act, 2011---Section 43 of the Sindh Sales Tax on Services Act, 2011, shows that penalty in terms of serial No.1 of the Table under S.43 deals with "not-getting registered voluntarily" and "being registered compulsorily" provided under Ss. 24 and 24B, respectively---It was very much clear from the wordings of statute that penalties provided in the first part (in column (2)) are applicable to single situation i.e. "not-getting registered voluntarily" and the assessing officer has discretion to impose penalty either of Rs.100,000/- or five per cent of the amount of sales tax---However, the penalty provided in second part is applicable to twin situations i.e. "non-compliance of the notice (requiring taxpayer to get registered voluntarily) or when an order has been passed making the taxpayer registered "compulsorily", wherein the law prescribes minimum penalty of Rs.100,000/=---Situations mentioned at serial No.1 (in column (2)) are interconnected---In case a person, liable to be registered, does not get himself registered, the assessing officer issues a notice requiring such person to get himself registered voluntarily---In case such person responds to such notice positively and gets himself registered, the assessing officer, after considering the existence of mens rea behind non-registration prior to providing taxable services, may impose either of the penalties i.e. Rs.100,000/- or five per cent of the amount of sales tax---However, in case of non-compliance of the notice, the assessing officer is liable to register the said person compulsorily and also impose a penalty of Rs.100,000/----Word "shall" used with the penalty (in column (2)) makes it directory in nature, therefore, no discretion can be exercised by the assessing officer in case the taxpayer does not comply with the notice---Thus, in the present case the imposition of penalty amounting to Rs.100,000/- in terms of serial No.1 of the Table under S.43 of the Act, 2011, was justified---Appellate Tribunal, Sindh Revenue Board, maintained the impugned order / findings of Commissioner (Appeals)---Appeal was dismissed, in circumstances.

DERA TONIGHT, MAKKI RESIDENCY, OLPER ROAD, ROHRI, DISTRICT SUKKUR vs COMMISSIONER (APPEALS-II), SINDH REVENUE BOARD, KARACHI Ss — 2025 PTD 1880 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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