NAEEM FISH FRY vs COMMISSIONER (APPEALS-I), SINDH REVENUE BOARD, KARACHI Ss

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NAEEM FISH FRY VS COMMISSIONER (APPEALS-I), SINDH REVENUE BOARD, KARACHI Ss. 24, 24B & 43, Table, S.No.1---Taxable services, rendering of---Non-registration---Subsequent registration---Whether compulsory---Penalty, imposition of---Scope and effect---Whether penalty amounting to Rs.100,000/-imposed upon the appellant (restaurant) in terms of serial No.1 of the Table under S. 43 of the Sindh Sales Tax on Services Act, 2011 ('the Act 2011') was justified?---Held: Penalties for non-registration before providing taxable services are provided in terms of serial No.1 of the Table under S. 43 of the Act 2011 ; which provisions shows that penalty in terms of serial No.1 of the Table under S. 43 of the Act, 2011 deals with two situations i.e. "not getting registered voluntarily " and " being registered voluntarily" provided under Ss. 24 & 248 of the Act, 2011 , respectively ; it is very much clear from the wordings of statute that the penalty provided in the first part (in column No. 2) is applicable in single situation i.e. "not getting registered voluntarily" and the assessing officer has discretion to impose penalty either of Rs.10,000/- or five per cent of the amount of sales tax---However, the penalty provided in the second part is applicable to twin situations i.e. "non-compliance of notice (requiring the taxpayer to get registered voluntarily)" or "when an order has been passed making taxpayer a taxpayer registered compulsorily", wherein the law to get registered 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, assessing officer, considering the existence of registration prior to providing taxable services, may impose either of the penalties i.e. Rs.10,000/- 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 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---Therefore, 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 findings of the Commissioner Appeals---Appeal, filed by registered Person, was dismissed.

NAEEM FISH FRY vs COMMISSIONER (APPEALS-I), SINDH REVENUE BOARD, KARACHI Ss — 2026 PTD 525 BOARD-OF-REVENUE-SINDH-APPELLATE-TRIBUNAL

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