Special procedure

Petitioner company assailed amendment in R.42-B of Sales Tax on Services Rules, 2011 meant for special procedure for payment of tax on construction services

Validity

Change in R.42-B of Sales Tax on Services Rules, 2011 by prescribing limitation and restriction for opting to charge at standard rate, was within the frame of S.8(2) of Sindh Sales Tax on Services Act, 2011, which exercise was not availed, as required in terms of time specification, which consequently led to an attempt on the part of petitioner to challenge amendment brought by way of a notification duly approved by government

Amendments in question were neither ultra vires the Constitution nor law itself

Constitutional petition was dismissed in circumstances.

Question before High Court was whether taxpayer paying sales tax under Special Procedure of R.58H of Sales Tax (Special Procedure) Rules, 2007, could be subjected to pay further sales tax under S.3(1)(A) of Sales Tax Act, 1990 on supplies

Held, that taxpayer in the present case being a manufacturer of steel products came within frame of special procedure extended through S.71 of Sales Tax Act, 1990

Since such taxpayer was being dealt with through a special regime, therefore the general treatment may not be applied for recovery of additional sales tax in terms of S.3(1)(A) of Sales Tax Act, 1990 from such taxpayer

Rule 58H of Sales Tax (Special Procedure) Rules, 2007 provided that payment of sales tax by manufacturer of steel products under said section would be considered final discharge of sales tax liability, and S.71 of Sales Tax Act, 1990 had an overriding effect of general provisions of the said Act, and therefore S.3(1)(A) of Sales Tax Act, 1990 could only be enforced in respect of goods which were being charged under S.3(1) of Sales Tax Act, 1990 at rate prescribed therein on ad-valorem basis

Reference was answered accordingly.

Section 71 of the Sales Tax Act, 1990 overrides all other provisions of the Sales Tax Act, 1990, including S.3 thereof, therefore, further tax cannot be imposed on the five sectors zero-rated goods.

Levy of tax plays pivotal role in the society, but since it puts pecuniary burden on person, its imposition is not permissible unless warranted by law

Levying tax is essentially the domain of Parliament as mandated by Art. 77 of the Constitution

Article 77 of the Constitution provides in clear terms that tax can be imposed and collected either by or under authority of the Act of Parliament, and nowhere it is provided that Executive, on its own, can introduce some new tax on basis of rules in derogation to what the main statute prescribes

Purpose of delegating powers to Executive to frame rules, devise regulations and issue notifications and guidelines is only to facilitate implementation of laws to the best of their object and mandate

Executive, assuming such powers, is not permitted to frame rules or issue notification that are independent of the scheme of parent law

Any such attempt would render the rules, regulations, etc. nullity in eyes of law.

"Anything" used in S. 71 of Sales Tax Act, 1990 broadly expanded scope of S. 71 for purposes of overriding effect of all provisions contained in Sales Tax Act, 1990

Such connotation may have a diversity of meanings and may be employed to indicate "all" or "every" as well as "some" or "one", therefore, it clearly followed that meaning of said word used in statute were dependent upon context and subject matter of statute.