IRFAN SAADA T KHAN, J. Since the issue raised in all the instant captioned petitions is common hence all these are proposed to be disposed of by this consolidated judgment.
2. Briefly stated the facts of the case are that the petitioners are Limited Companie s engaged in different business and are having proper Sales Tax Registration Number , who filed their sale tax return electronically . That the petitioners are liable to withholding sale tax on services at the applicable rates in respect of the value of taxable service provided to them. It is the claim of the petitioner that if the said services were provided to them by unregistered persons, input tax of such sale was not allowed to the petitioners while e-filing the sales tax returns and therefore since their sales tax liability has increased due to the non-allowability of input tax in respect of the taxable service provided to them by those unregistered person, the same is causing serious prejudice to the petitioners, which according to them is unconstitutional and without jurisdiction, therefore these petitions may be allowed by allowing the petitioners input adjustment of the deductions made by those unregistered persons and to declare the procedure of withholding tax, as provided under Sindh Sales Tax Rules, 2011, Sindh Sales Tax Special Procedure (Withholding) Rules, 201 1 and 2014 to be illegal, unconstitutional and without jurisdiction.
3. Messrs Naveed Amjad Indrabi, Anwar Kashif Mumtaz, Ammar Athar Saeed and Usman Alam, Advocates, have appeared on behalf of the petitioners and submitted that as per the Sindh Sales Tax Services Act, 2011 the process of input tax adjustment has been defined under Section 15 of the said Act and procedure for the said input adjustment has been provided under Sales Tax Services Rules, 2011: As per the learned counsel registered person is allowed to claim adjustment of the input tax in respect of the services received by the said person, which it claims in its monthly sales tax return, however , a person claiming input tax in respect of the services received by it from unregistered person is not allowed such facility with the result that the petitioners cannot claim the said input tax in their monthly tax return and as per the learned counsel for the petitioners the same is causing heavy financial burden to the petitioners, as in the case of registered persons full amount of input tax adjustment is being claimed and allowed to them but so far as input tax claim of unregistered persons is concerned the same is not allowed for no fault of the petitioners and the same, according to them, is a discriminatory treatment with them. They further stated that the concept of withholding sales tax on services was introduced in the year 2014 according to which withholding agents are required to withh old sales tax on the applicable rate of the value of the taxable services provided to them, which as per the learned counsel for the petitioners should be made available and applicable to the persons e-filing their monthly sales tax return as an input adjustment irrespective of the fact that the taxable services have been received by an unregistered person.
4. As per the learned counsel for the petitioners if the withholding agent obtains taxable services from an unregistered person, the said withholding agent, which in the instant matter are the petitioners, should not suffer on account of this complacency / shortcomin g of the unregistered person as the sales tax on taxable services have duly been deducted by the withholding agent i.e. the petitioners and the petitioners should not be penalized by not allowing them to claim the said withholding tax.on the taxable services received by them even through unregistered persons. The learned counsel then read out the relevant provisions of the law which are; Sections 2 (52), 2(63), 15 and 15A of the Sindh Sales Tax on Services Act, 2011, Rules 22, 22A and 28 of the Sindh Sales Tax on Services Rules, 2011, definition of the term "Withholding Agent" as given in Rule 2(8) of the Sindh Withholding Tax Rules, 2011 and also Rule 3(3) thereof, Rules 1(2), 2(10), 2(1 1) and Rule 3(4) of the Sindh Withholding Tax Rules, 2014.
5. The learned counsel further stated that in case of deduction of input tax, whether from a registered oar unregistered person, the person deducting the same should be given credit of the said input tax adjustment. They further stated that if Section 15A of the Sindh Sales Tax on Services Act, 2011 and Rule 22A of the Sindh Sales Tax on Services Rules, 2011 are examined, it may be seen that these are inclusive definitions and hence widest possible interpretation has to be given to these two terms and the petitioners shou ld not be restricted not to claim the input tax adjustment in respect of the services received by them from unregistered person. In support of their contentions the learned counsel have placed reliance on the decision given in the case of Commissioner Inland Revenue (Zone-I) LTU, Karachi v. Messrs Linde Pak Ltd., Karachi (2020 SCMR 333). They further stated, that since the procedure is causing great financial loss to the petitioner , the same may be whittled down and the petitioners may be allowed to claim sales tax adjustment, even if they receive taxable services, even from those unregistered persons.
6. Messrs Kafeel Ahmed Abbasi, Ghulam Murtaza Korai and Shamshad Ali Narejo, Advocates, have appeared on behalf of the respondents and at the very outset stated that the instant petitions are not maintainable and are liable to be dismissed in limine. They stated that the law framers have categorically put a bar upon the unregistered persons that no benefit could be given in respect of the taxable services obtained from those unregistered persons with the main objective to get those unregistered persons registered in the sale tax department and to documentize the economy to discourage the policy of obtaining taxable services from those unregistered persons with a view to boost and encourage the registered persons in respect of allowing input tax adjustment. They further stated that the petitions are not maintainable on the ground that the petitioners are enrolled with Sindh Revenue Board (SRB) as a withholding 'agent and not as a service provider and if they want to claim any input tax adjustment, they should approach the sales tax department rather than approaching SRB. They stated that Sindh Sales Tax on Services Act, 2011 is based on value addition and every person obtaining a taxable service is saddled with the responsibility to withhold the input tax but the input of that withholding tax has been restricted to the extent of registered persons only and there is no violation of either any constitutional mandate or of any fundamental right as no illegality , on the part of the respondents, has been made, as incorrectly claimed by the petitioners.
7. They further stated that the amendment made in the withholding rules and procedures do not affect the petitioners, as in case of obtaining taxable service and paying input tax from unregistered persons the element of input tax adjustment would become cost component of the goods being dealt with by the petitioners and will ultimately be passed on to the consumer , causing no financial loss or prejudice to the petitioners. They , therefore, finally submitted that petitioners have approached this Court with unclean hands by claiming input tax adjustment in respect of the taxable services received by them through unregistered persons which, according to them, is barred hence these petitions may be dismissed.
8. We have heard the learned counsel for the parties at considerable length and have also perused the record and the decisions relied upon by the learned counsel for the petitioners.
9. Before proceeding any further , we deem it appropriate to reproduce herein below the relevant law relied upon by the learned counsel appearing for the petitioners as well as for the respondents.
Sindh Sales T ax on Services Act, 201 1 2(52) "input tax", in relation to a registered person, means--
(a) Tax levied under this Act on the services received by the person;
(b) Tax levied under the Sales T ax Act, 1990 on the good imported by the person:
(c) Tax levied under the Sales T ax Act, 1990, on the goods or services received by the person; and
(d) Provincial sales tax or Islamabad Capital T erritory sales tax levied on the services received by the person: Provided that the Board may, by notification in the official Gazette, specify , that any or all of the aforesaid tax shall not be treated as input tax for the purposes of this Act subject to such conditions and limitations as the Board may specify in the notification: 2(63) "person" means--
(a) an individual;
(b) a company , an agency or an association of persons incorporated, formed, organized or established in Pakistan or elsewhere: (c). the Federal Government; (d) a Provincial Government:
(e) a Local Authority or Local Government in Pakistan; or
(f) a foreign Government, a political sub-division of a foreign Government, or a public international organization; Explanation:-- The use of the word "he" in this Act shall be taken to refer to any or of the persons mentioned in sub-clauses
(a) to above.
15. Adjustments.---- The Board may, [by notification in the Official Gazette, and] subject to such conditions and restrictions as it may prescribe and 2[-***], allow registered persons to claim adjustments or deductions, including refunds arising as a result thereof, in respect of the sale tax paid on or in respect of any taxable services or class of taxable services provided by them [Provided that the refund arising as a result of a claim of adjustments or deductions, if any shall be made on, yearly basis in the month following the end of the financial year .] [15A. Input tax credit not allowed.---W Notwithstanding anything contained in this Act, a registered person shall not be entitled to claim, reclaim, adjust or deduct input tax in relation to--
(a) the goods or services used or to be used for any purpose other than for the taxable services provided or rendered or to be provided or rendered by him:
(b) the goods in respect of which sales tax has not been deposited in the Federal Government treasury by the respective suppliers of goods;
(c) the services in respect of which the Provincial sales tax has not been deposited in the treasury of the respective Provincial Government and the services in respect of which the Islamabad Capital Territory sales tax has not been deposited in the treasury of the Federal Government;
(d) further tax, extra tax or value addition tax levied under the Sales Tax Act, 1990, and the rules or notifications issued thereunder:
(e) fake, false, forged, flying or fraudulent invoices or the invoices issued by persons black-listed or suspended by Board or FBR? or any other Provincial Sales. T ax Authority:
(f) capital goods and fixed assets not exclusively used in providing or rendering of taxable services;
(g) the following goods or services, excluding the ones directly used and consumed in the economic activity of a registered person in provision of the services paying sales tax at a rate not less than thirteen per cent ad valorem:-
(i) Vehicles classified under Chapter 87 of the First Schedule to the Customs Act, 1969 (Act No. IV of 1969) and parts (including batteries and tyres and tubes) of such vehicles:
(ii) calendars, diaries; gift, souvenirs and giveaways:
(iii) garments, uniforms, fabrics, footwear , hand wear , headwear for the, employees;
(iv) food, beverages and consumptions on entertainments, meetings or seminars or for the consumption of the registered person or his Directors, shareholder , partners, employees or guests;
(v) electricity , gas and telecommunication services supplied at the residence of the employees or in the residential colonies of the employees;
(vi) building materials including cement, bricks, mild steel ' products, paints, varnishes, distemper , glass products;
(vii) office equipment and machines (excluding electronic fiscal cash registers), furniture. fixtures or furnishings; (viiii) electrical and gas appliances, pipes and fittings
(ix) wires, cables: sanitary fittings, ordinary electric fittings, electric fans and electric bulbs and tubes; and
(x) crockery , cutlery , utensils, kitchen appliances and equipment:
(h) Utility bills not in the name of the registered person unless evidence of consumption of such utilities is provided to the satisfaction 'of the officer of the SRB not below the rank of an Assistant Commissioner;
(I) Goods or services procured or received by a 'registered person during a period exceeding six months prior to date of commencement of the provision of taxable services by him;
(1) Goods or services used or consumed in a service liable to sales tax at ad valorem rate lesser than thirteen per cent or at specific rate '[or] at fixed rate or at such other rates not based on value: j) goods or services as are liable to sales tax whether a federal sales tax or a provincial sales tax at specific rate or at fixed rate or at such other rates not based on value or at a rate lesser than thirteen per cent ad valorem and are used or consumed as inputs in the' provision of a taxable service under this Act: Provided that in case of telecommunication services paying sales tax at a rate not less than nineteen and a half per cent ad valorem, the amount of sales tax paid on goods and services at ad valorem rates not exceeding seventeen per cent, can be claimed by the person providing the taxable telecommunication Services.
(k) the amount of sales tax paid on the telecommunication services in excess of 3[nineteen and a half] per cent ad valorem and the amount of sales tax paid on other taxable goods or services in excess of thirteen per cent ad valorem; and
(1) such goods or services as are notified by the Board to be in-admissible for input tax claim or reclaim or credit or adjustment or deduction.
(2) In case where a registered person deals with taxable and non-taxable or exempt services, he shall be entitled to claim or reclaim, for input tax credit or adjustment or deduction, only such proportion of the input tax as is attributable to taxable or non-exempt services in such manner as may be prescribed by the Board.
(3) No person other than a person regist ered under sections 24, 24A or 24B of this Act shall claim or deduct or adjust any input tax in respect of sales tax paid on any goods or services provided or procured by him for use or consumption in the provision of taxable services.] Sindh Sales T ax on Services Rules, 201 1
22. Determination of Input Tax.---[(1)] Subject to the provision of Rule 22A and other relevant provisions of the Act and the rules and notifications issued thereunder , a registered person who holds a tax invoice (for the purchase of goods or services used or consumed in providing or rendering of taxable services) in this name bearing his sales tax registration/NTN, shall be entitled to deduct/adjust input tax paid during the relevant tax period, subject to the condition that the input tar in relation to the taxable services shall be worked out first and the amount so worked out, shall be bifurcated for the services provided or rendered in Sindh and also taxed in Sindh and for those provided or rendered outside Sindh and also not taxed in Sindh.
Provided that where the registered perso n did not deduct or adjust the input tax in the relevant period, he may claim such input tax deduction or adjustment in the tax returns for any of the [six] succeeding tax periods.
(2) The Input tax paid on goods and services used in providing or rendering non-taxable or exempt services 2[or the services liable to reduce rate of tax or specific rate of tax] and also on the services provided or rendered outside Sindh shall not be admissible.
(3) In case an input is used in providing or rendering taxable services and also non-taxable or exempt services 3 [or the services liable to reduce rate of tax or specific rate of tax] and the services provided or rendered outside Sindh, the input tax shall be apportioned according to the following formula for availing of input tax adjustment/deduction; Value of taxable services Residual in put tax credit = on tax taxable services x admissible input tax (value of taxable + value of non-taxable/exempt service 4[/reduce rate/specific rate]) (4) Monthly adjustment of input tax claim, based on sub-rules (1), (2) and (3) of this rule, by a registered person shall be subject to reconciliation and audit by the officers of the SRB.
(5) Any inadmissible Input tax adjustment , claimed or made by a registered person, shall render him liable to action under the provisions of the law besides being liable to penalty and default surcharge under sections 43 and 44, respectively , of the Act in addition to his liability to pay the amount involved.] [22A. Input tax credit not allowed.---- In addition to the provisions of section 15A of the Act in this regard, a registered person shall also not be entitled to claim or reclaim or adjust or deduct input tax in respect of:-
(i) sales tax claimed as input tax where the registered person, making such input tax credit/adjustment, has not made the payment, within one hundred and eighty days from the date of the tax invoice, of the invoiced amount (including the sales tax amount) of input goods and services, other than the input utilities (telecom, electricity and gas), courier services and also the directly imported goods, through a crossed cheque drawn on a bank, or by a crossed bank draft or crossed pay order or any other crossed banking instrument showing the' transfer of the amount of tax invoice in favour of the goods supplier or the service provider from the business bank account of the buyer or service recipient making or claiming or reclaiming such input tax credit/adjustment.
Provided that online transfer of payment from the business bank account of the buyer or the service recipient to the business bank account of the goods supplier or the service provider , as well as payment through credit card or debit card, shall be treated as transaction through banking channel, subject to the condition that such a transaction is verifiable from the bank statements of the business bank accounts of the buyer or service recipient; ****1
(iii) goods or services acquired for personal or non-business consumption;
(iv) goods or services in respect of which input tax adjustment is barred under any federal or provincial law, for the time being in force, relating to sales tax; and
(v) carry forward of the input tax adjustment relating to tax period June, 201 1, or earlier;]
28. Determination of Tax liability .----(1) While determining his tax liability , a service provider shall be entered to claim input tax credit for the tax paid on account of taxable purchases and utilities like telephone, gas and electricity consumed proportionately for furtherance of taxable activity , against its output tax liability , subject to any conditions, limitations or restrictions prescribed under the Act or lithe rules made thereunder].
Provided that no input tax adjustment shall be allowed against the purchase invoice or may bill, which is not in the name of the service provider and/or does not contain his registration number . However in case the utility bill is not in the name of service provider , input tax against the come may be allowed only if the bill contains its registration number and shows the same business address as has been declared, for sales tax purposes: Provided further that the input tax credit shall be admissible only for the amount of tax that has been paid on the purchases or utilities consumed during the tax period for which return is being submitted.
(2) A service provider who is providing or rendering taxable as well as non-taxable services can claim only such proportion of input tax as is attributable to the taxable services.
Sindh Sales T ax Special Procedure (W ithholding) Rules, 201 1 2(8) "Withholding agent " means the withholding agent under these rules and includes the accounting office which is responsible for making payment against the taxable services received by a government department or government office.
3(3) A withholding agent, having Free Tax Number (FTN) or National Tax Number (NTN) and falling under clause (a), (b), (c), (d) or (e) of sub-rule (2) of Rule 1, shall on receipt of taxable services from unregistered persons, deduct sales tax at the applicable rate of the value of taxable services provided or rendered, to him from the payment due to the service provider and, unless otherwise specified in the contract between the service recipient and the service provider , the amount of sales tax for the purpose of this rule shall be worked out on the basis of gross value of taxable services.
Sindh Sales T ax Special Procedure (W ithholding) Rules, 2014 1(2) They shall apply to taxable services as are provided or rendered to followin g persons, hereby specified as "withholding agents", for the purposes of deduction and deposit of tax, namely: -
(a) offices and departments of Federal Government, Provincial Governments, and Local or District Governments:
(b) autonomous bodies;
(c) public sector organizations, including public corporations, state-owned enterprises and regulatory bodies and authorities;
(d) organizations which are funded, fully or partially , out of the budget grants of the federal or provincial governments;
(e) companies, as defined in clause (28) of section 2 of the Act;
(f) FBR registered or SRB registered persons or the persons specified in clauses (a), (b), (c), (d) and (e) of sub-rule
(2) of Rule 1 of there Rules who receive or procure advertisement services (tariff heading 98.02 and the sub- headings thereof, other than those of sub-heading 98024000 and also other than such of the advertisements of sub-heading 9802.9000 as are transmitted or displayed on the website or web page of newspapers and periodicals publisised in Sindh) 3[.* * * or renting of immovable property services (tariff heading 9806.3000) or services of auctioneers (tariff heading 9819.9100) or services of inter-city transportation or carriage of goods by road (tariff heading 9836.0000, other than those through pipeline or conduit for through specialized car carriers or through the fleer of logistic companies owning not less than 25 goods transport vehicles]), and also the persons providing or rendering the services of advertising agents (tariff heading 9805.7000) who issue release orders or book advertisement space in relation to advertisement services (tariff heading 98.02 and the sub-headings thereof);
(g) SRB-registered persons receiving or procuring taxable service from un-registered persons;
(h) SRB-registered persons or insurers (tariff heading 9813.1000 and the sub-heads thereof) receiving or procuring the services provided or rendered by insurance agents or insurance brokers (tariff heading 9855.0000);
(i) persons or passengers using the services of a cab aggregator (tariff heading 9846.0000) required to deduct or withhold the tax in elation to the services provided or rendered by the owners or drivers of the motor vehicles using the services of the cab aggregators (tariff heading 9846.0000); and
(j) persons receiving or procuring such of the services of contractors (tariff heading 9814.2000) and construction (tariff heading 9824.0000) as are liable to reduced rate of tax at 2% or 5% under Notification No. SRB 3-4/9/2017 dated 2nd June, 201 7 or are liable to reduced rate of tax at 5% under Notification SRB-3-4/3/2018 dated 6th February , 2018 and No.SRB-3- 4/8/2013 dated 1st July , 2013.] Provided that a person shall be treated as a withholding agent, for the purpose of there rules, only if he is resident in Sindh or has a place of business in Sindh.
2(10)"Un-registered person" means a person who is liable to be registered under the Act but is actually not registered and does not hold a Sindh sales tax registered number (SNTN): and 2(11) "Withholding agent" means a person as specified in sub-Rule (2) of Rule 1 of these Rules provided that he is resident in Sindh or has a place of business in Sindh 2[provided that in relation to the provisions of clause (i) of sub-Rule (2) of Rule 1 of these rules, the cab aggregator resident in Pakistan and the branch office or resident representative (in Pakistan) of the cab aggregator not resident in Pakistan shall be the withholding agent for the purposes of these rules.J.
Explanation.---The accounting offices responsible for or making payments against invoices/bills for the taxable services received by an office or department of the Federal Government. Provincial' Governments or Local or District Governments shall be treated as a withholding agent for the purpose of these rules.
3(4) A withholding agent having Free Tax Number (FTN) or National Tax Number (NTN) or Sindh Sales Tax registration number (SNTN) and falling under sub-rule (2) of Rule 1, shall, on receipt of taxable services from unregistered persons, deduct the amount of sales tax at the tax rate applicable to the taxable services provided or rendered to him, from the amount invoiced or billed or demanded or charged by such un-registered service provider and unless otherwise specified in the contract between the service recipient and the service provider , the amount of sales tax for the purpose of this rule shall be worked out on the basis of gross value of taxable services '[under the tax fraction formula]: Provided that in case a withholding agent receives taxable services from an un-registered person, he shall be responsible to obtain and keep in record a copy of the CNIC of the un-registered service provider if he is an individual and a copy of the NTN certificat e of the un-registered service provider if he is an AOP or a company . The withholding agent shall also be responsible to enter the name, CNIC and NTN of the un-registered service provider correctly in the relevant columns of the return Form SST -03 or SSTW -03, as the case may be.
10. From the arguments advanced by the learned counsel appearing for the petitioners and the respondents the core controversy involved in the instant petitions being that whether the petitioners are entitled to claim input adjustment in respect of the taxable supplies or services received by them from the unregistered persons. It may be noted that the term "unregistered person" has been defined in the law which means a person who is liable to be registered but not registered. From the above provision of the law it may be noted that a person obtaining a taxable Services from another person, whether the other person is registered or not, is liable to deduct tax in respect of taxable services received by the person. It may further be noted that the term "input tax" has been defined in the law which means a tax levied on the services received by the person' and the person would include a company etc. and in the instant matter it is an undeniable fact that the petitioners fall, not only under the definition of a person but are also covered under the definition "withholding agent".
11. As per the above law a withholding agent is saddled with the responsibility , while receiving taxable supplies or services from another person, to deduct the tax on the said taxable services. It is also an undeniable fact that in the instant matter the petitioners are the withholding agents who have received taxabl e services from certain persons, who are unregistered persons, but being the withholding agents, i.e. the petitioners have duly deducted the input tax in respect of the services received by them. The problem, however , which is arising in the instant matter is with regard .to the filing of the returns as it is noted that while filing those returns there is no provision with regard to input adjustment of unregistered persons and due to this reason the input tax adjustment claimed by the petitioners was being disallowed /rejected by the computer generated form, since the system does not accept the said input adjustment because of the fact that taxable services though have been obtained by the withholding agents i.e. the petitioners but since these were from unregistered persons hence the system does not accept the same as the term "unregistered person" does not find place in the said system.
12. From the perusal of the above law it may be noted that the law does not bar obtaining of the taxable services from an unregistered persons, however the only impediment which finds place in the law is with regard to the person who otherwise is liable to be registered but not registered would be considered as an unregistered person and a penalty A has been provided under Section 43 of the Act, 2011 for the act of non-registration. In the instant matter , it may be noted that the learned counsel appearing for the respondents have not pointed out even a single provision of law whereby it has been provided that no input tax adjustment would be available on the taxable services obtained by a withholding agent or a registered person from an unregistered person though it has been pleaded by the learned counsel for the petitioners that e-return does not accept the same but from the law explained before us by the learned counsel for the respondents it may be noted that no provision of law is cited through which input adjustment could be denied to a withholding agent obtaining taxable services from an unregistered person; rather the proviso to Section 3(4) of the Sindh Sales Tax Special Procedure (Withholding)
Rules, 2014, mentioned above, clearly stipulates that withholding agent, who receives taxable services from an unregistered person, is responsible to obtain and keep in record a copy of the CNIC of the unregistered service provider , if he is an individual and a copy of the NTN certificate of the said unregistered person if he is an AOP or a company .
13. The reading of the above proviso clearly indicates that taxable _services could be obtained from an unregistered person and the withholding agent is only required to obtain a copy of CNIC of the said unregistered person, if he is an individual but if it is a company or NTN holder , a copy of the NTN certificate meaning thereby there is no restriction for obtaining taxable services from an unregistered person and the only responsibility assigned to a person obtaining taxable services from an unregistered person is with regard to obtaining CNIC (in the case of an individual) and NTN certif icate (in the case of a company). Thus when the law does not put a bar upon receiving taxable services from an unregistered person, there cannot be any bar on claiming input adjustment in respect of the taxable services obtained from the unregistered person also, as the learned counsel appearing for the department (respondents), as stated above, have failed to point out 'any provision of the law which specifically bars denial of the input adjustment in respect of the taxable services obtained by a person, being withholding agent, from an unregistered person but the only requirement is with regard to obtaining a copy of CNIC or NTN certificate, as the case may be. The above provisions of law also clearly stipulat e entering the name, CNIC and NTN of the unregistered persons in the sales tax form which also supports the contention of the petitioners that even if they have obtained taxable services from the unregistered persons, they are entitled for input adjustment and since the form so designed by the department / respondents is not accepting and recognizing unregistered persons for input adjustment, there appears to be a defect in the said form which needs to be corrected.
14. It may be noted that while arguing the matter , the learned counsel appearing for the respondents stated that under sales tax and income tax, registered persons and unregistered persons, filers and non-filers, are treated differently and hence no discriminatory treatment has been meted out in the instant matter . In our view this argument of the department has no force as in the case of sales tax the law itself clearly provides different rates of taxes for registered and unregistered persons and similar is the case with income tax matters. In the income tax matters there is also clear distinction with regard to tax rates for filers and non-filers but in the law before us no such distinction has been provided; hence resort to sales tax law and income tax law cannot be taken with regard to Sindh Sales Tax on Services. It has further been noted that if a person is unregistered, penal provisions are provided under the law for those unregistered persons but in our view a perso n, who is a registered person, obtaining taxable 'services, from unregistered person cannot be denied the input tax adjustment simply on the ground that the other said person is unregistered.
15. The upshot of the discussion made above being that, in our view, the petitio ners are entitled to claim input adjustment in respect of the taxable services provided to them by unregistered persons. SRB, therefore, is directed to make necessary amendment /provision in the e-return to enable the persons filing their returns via e-filing to claim the input tax adjustment from unregistered persons also and till such time the petitioners may be allowed to file their returns manually in order to avoid any confusion created in this behalf. All the petitions, therefore, stand allowed along with the listed application s. Let a copy of the judgment be forwarded to the Chairman, SRB, for information and compliance. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.