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S.T.A. No.295/LB of 2005, decided on 15th January, 2008.

----S.34---S.R.O. 1349(I)/99, dated 17-12-1999---S.R.O. 463(I)/2007, dated 9-6-2007---S.R.O. 999(I)/2007, dated 29-9-2007---Default surcharge---Amnesty---Levy of additional tax and penalty for late payment---Demand was challenged on the ground that such liability was discharged by depositing 25% of the additional tax and penalty in terms of amnesty S.R.O. 1349(I)/99, dated 17-12-1999---Department contended that appellant was not entitled to the benefit under S.R.O. 1349(I)/99, dated 17-12-1999 as entire principal liability was not discharged before 31-1-2000 i.e. cut-off date---Validity---Held, on the date of hearing as on 14-1-2008, Appellate Tribunal observed that government had waived off whole of the amount of default surcharge (additional tax) and penalties vide S.R.O. 463(I)/2007, dated 9-6-2007 as amended vide S.R.O. 999(I)/2007, dated 29-9-2007 payable by a person provided the principal amount was paid by 30-6-2007 or had already been paid at the time of issuance of such notification---In the present case, entire principal amount had been paid by 11-2-2000 and, as such, the demand of additional tax and penalty stood remitted in terms of such notification---Appeal was accepted by the Appellate Tribunal and order was set aside. Tariq Najib Ch. for Appellant. Sauood Imran, D.R. for Respondent. Date of hearing: 14th January, 2008.

This appeal has been filed by Messrs Pak Electron Ltd., Lahore (the appellant herein) against Order-in-Original No.74 of 2000, dated 16-3-2000 passed by the Additional Collector, Sales Tax, Lahore. 2. Briefly the facts leading upto this appeal are that the appellant did not pay its sales tax liability of Rs.11,394,747 relating to the tax period December, 1999 by the due date i.e., 15th January, 2000. The appellant, however, deposited an amount of Rs.11,750,762 subsequently on the following dates:--

3. The appellant was accordingly held liable to pay additional tax amounting to Rs.2,35,660 along with penalty of Rs.5,69,78 for late payment vide the impugned order. The appellant challenged this demand on the ground that it had already discharged its liability by depositing 25% of the additional tax and penalty it terms of amnesty S.R.O. 1349(I)/99, dated 17-12-1999. The department opposed the appeal pleading that the appellant was not entitled to the benefit under this S.R.O. as entire principal liability was not discharged before 31-1-2000 i.e. the cut-off date provided therein. 4. During the course of hearing on 14-1-2008, however, learned counsel for the appellant came up with a copy of S.R.O. 463(I)/2007, dated 9-6-2007 as amended vide S.R.O. 999(I)/2007, dated 29-9-2007 whereby the government has waived off whole of the amount of default surcharge (additional tax) and penalties payable by a person provided the principal amount is paid by 30-6-2007 or has already been paid at the time of issuance of the notification. There is no dispute, in the instant case, that the entire principal amount has been paid by 11-2-2000 and, as such, the demand of additional tax and penalty stands remitted in terms of the aforesaid notification. Learned counsel D.R. has seen the notification and conceded to the appellant"s claim. 5. For the reason discussed in the preceding para, the appeal is accepted and the impugned order is set aside. C.M.A./115/Tax(Trib.) Appeal accepted.

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