Sales Tax Act, 1990

  1. Section 6(2) read with section 26 — Filing of return and depositing tax — Registered persons are under obligation to file return and pay tax on due date — Contention that tax is due when it is ascertained by the adjudicating authority has no force — Under section 6(2) it is obligatory for a registered person that he shall pay the tax at the time of filing of return — In section 26 it is specifically mentioned that registered persons shall furnish correct return and deposit tax not later than due date — Appellants have admitted that tax was due by the 15th of relevant month and they have specifically mentioned period of delay in their appeals before the Tribunal as well as in the High Court — A combined reading of section 6(2) and 26 shows that a registered person shall furnish tax return not later than due date — The due date admittedly is the 15th day of month following the end of tax period. Held: the appellants cannot be allowed to blow hot and cold in one breath — They have taken the position that tax was due on 15th of relevant month in each case and it has been deposited late — After taking this position the appellants cannot be allowed to argue that tax was due only when the adjudication order is passed by the authorities. M/S Amin Spinning Mills v. Deputy Collector Central Excise & another 2011 SCR 196 (C)
  2. Section 6(2), 26 and 33 read with section 2(A) of Sales Tax Act — Filing of tax return and depositing tax in due date — Penalties on depositing tax after due date — Every registered person shall pay the tax at the time of filing the return under section 6(2) of Act and under section 26 monthly return in a prescribed form shall be furnished by a registered person. The section also provides that a registered person shall pay tax due along with monthly return — Due date for furnishing return as defined in sub-section (9) of section 2 is 15th day of the month following the end of tax period.” — The case of appellants has all along been that, due date for depositing tax was 15th of the relevant month — Entry No.1 of section 33 provides penalties in case of breach of section 26. Held: The appellants failed to furnish the return on the due date — Penalty has correctly been imposed. M/S Amin Spinning Mills v. Deputy Collector Central Excise & another 2011 SCR 196 (D)
  3. Section 34 — Additional tax — When tax due is not paid in due date — A perusal of section 34 reveals that if a person does not pay the tax due or any part thereof whether wilfully or otherwise within time he shall pay additional tax at the rate of  1 1/2% . Held: The language of the section leaves no scope for argument that late depositing of tax was not wilful, no discretion is left with the authorities to impose the additional tax. M/S Amin Spinning Mills v. Deputy Collector Central Excise & another 2011 SCR 196 (E)
  4. —Section 46 & 47—appeal before High Court—legal questions arising out of an order u/s 46, have to be raised and resolved— any sort of legal question which has neither been raised before the adjudicating officer or appellate forum cannot be raised before the High Court. Mangla Metals  v. Addl. Collector Central Excise 2019 SCR 400 (A)
  5. —Section 46 & 47—Qanun-e-Shahdat, 1984—Art. 85–record of Excise Check Post—admissibility in evidence—appeal before Tribunal & High Court— the record maintained by the Check Post falls within the category of the documents forming acts and record of acts of official bodies—such record has got status of public document according to Art. 85. Mangla Metals  v. Addl. Collector Central Excise 2019 SCR 400 (E)
  6. —Section 47—memo of appeal before High Court— question of law arising out of an order of Tribunal can be agitated and resolved, which means the point or question raised, argued, either attended or not by the Appellate Tribunal. Mangla Metals  v. Addl. Collector Central Excise 2019 SCR 400 (B)
  7.  —Section 47—memo of appeal before High Court— new point/question of law barred—legal question of competency of Additional Collector neither raised at the time of adjudication or appeal before Tribunal— agitating such point before High Court is against law— such question is out of the scope of section 47 (1). Mangla Metals  v. Addl. Collector Central Excise 2019 SCR 400 (C) 2005 PTD 1998 (SC AJK) & 2014 SCMR 709
  8. Section 47read with section 46, Sales Tax Act — Appeals before High Court — Maintainable only on question of law — No specific format for raising question of law — the appeals before High Court from the order of Tribunal are filed under section 47 of the Sales Tax Act, 1990 — Under sub-section (1) of section 4, an appeal lies to the High Court in respect of any question of law arising out of the order under section 46 —- The section leaves no doubt that only question of law can be raised before the High Court — No specific format for raising question of law in appeal is provided in the section. Held: It is sufficient if an assessee raises the question of law in the appeal which arises out of an order of the Tribunal. Sales Tax Deptt. AJK & 2 others v. Sardar Ibrahim Khan  2011 SCR 101 (A)
  9. Section 47 — Appeals before High Court — High Court to deliver judgment on the question of law — Argument that High Court has no jurisdiction to remand the case to the Assistant Collector nor the High Court can issue a direction. Held: The argument is against sub-section (5) of section of 47 of Sales Tax Act — Under sub-section (5) while deciding the appeals under sub- section (1), the High Court shall deliver the judgment on the question of law and grounds shall be specifically mentioned in the judgment — Section also provides that a copy of the judgment shall be sent to the Tribunal and Tribunal shall pass such order which is necessary for the disposal of the case and order of the Tribunal has to be in conformity with the judgment of the High Court. Sales Tax Deptt. AJK & 2 others v. Sardar Ibrahim Khan 2011 SCR 101 (B)
  10. Section 47 — Appeal in the High Court — Only competent if question of law is involved — This section reveals that appeal lies in the High Court on any question of law arising out of the order passed by the Tribunal meaning thereby that if a question of law was raised before the Tribunal and the Tribunal resolved the same then the appeal can be filed competently on question of law. M/S Amin Spinning Mills v. Deputy Collector Central Excise & another 2011 SCR 196 (A)
  11. —Section 47(5)—Reference Before the High Court—the High Court obliged to decided question of law—the High Court decided the Reference in departure from section 47(5)—the Supreme Court set aside the judgment of the High Court and remanded the case for decision afresh—After going through the statutory provision , it is crystal clear that the High Court was under obligation to answer the question of law raised in the reference and deliver the judgment while specifying the grounds on which such judgment is delivered. The claim of the appellant is that more than one dozen legal questions were raised in the reference but neither a single question has been considered nor resolved by the learned High Court. The juxtapose perusal of the statutory provision and the impugned judgment of the learned High Court shows that the learned High Court has passed the impugned judgment in departure from the [relevant] provision. WAPDA Mangla vs Commissioner Inland Revenue 2018 SCR 1012 (A)
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