FINDINGS /DECISION ' This is a complaint by an individual who claims to be a retail dealer in hardware items and MS bars against his compulsory registration under section 19 of the Sales Tax Act, 1990. The main points in the complaint are as follows:--
(i) The complainant is carrying on business of hardware in Mohallah Dab No,2 of Mansehra on retail basis.
(ii) The officials of Sales Tax Department without ascertaining the extent of the complainant's business and without complying with legal provisions unjustly registered the complainant under section 19 of the Sales Tax Act, 1990 in 1998.
(iii) The complainant did not receive any registration certificate but a show-cause notice under section 11 and penalty orders under section 33 of the Sales Tax Act were received from which the complainant learnt of the compulsory registration.
(iv) The complainant informed the competent authorities that his business was on a very small scale and sections 19 and 14 of the Sales Tax Act, were not attracted in his case vide the following letters---
(a) Letter, dated 13-7-1998 addressed to the Additional Collector, Sales Tax, Peshawar together with affidavit.
(b) Letter, dated 9-2-1999 addressed to Assistant Collector (Registration), Sales Tax, Peshawar.
(c) Letter, dated 16-4-2003 addressed to Collector of Sales Tax, Peshawar for de-registration.
(v) Despite best efforts on the part of the complainant, the Sales Tax Department has not given due consideration to his submissions and is pressuring the complainant for filing of sales tax returns through notices and visits of officials.
' It has been prayed that the compulsory registration made by the Sales Tax Department and the subsequent penalty imposed be held to fall within the meaning of maladministration and directions be issued for de-registration as well as deletion of penalty in the complainant's case.
2. The respondent's reply has been received which contains the following main points--t
(i) The complainant is registered with the Collectorate of Sales Tax, Peshawar under the Sales Tax Act.
(ii) A survey, to ascertain the turnover of MS bars, was carried out by the staff of the Collectorate.
The complainant was one of the dealers whose business was found fit for registration and notices requiring these dealers to get themselves registered were, therefore, issued. As a result of non- compliance, action for compulsory registration was taken under section 19 of the Sales Tax Act and the complainant was registered along with other dealers. A certificate of registration was also issued to the complainant.
(iii) The fact that the certificate of registration was duly issued is evident from the complainant's own letters, dated 16-1-1999 and 9-2-1999 which were annexed with the complaint.
(iv) The complainant was required to file monthly tax returns as provided under section 26 of the Sales Tax Act and his failure to do so rendered him liable to action under sections 11 and 33.
(y) The complainant has not produced any valid evidence in respect of his turnover.
(vi) Except for the issuance of show-cause notices for violation of section 26, no sales tax official has visited the complainant's premises.
' It has been prayed that since the compulsory registration and the subsequent penalty were valid, the complaint be rejected.
3. The representatives of the two sides have been heard. The representative of the respondent did not, however, have any evidence that the certificate of registration had been received by the complainant. The reference to the complainant's letters, dated 16-1-1999 and 9-2-1999 in the respondent's reply was also found to be incorrect as these letters were written with regard to the show-cause notice for non-filing of returns and in no way imply the receipt of the certificate of registration. It is also seen that neither in the respondent's reply nor during the hearing has there been any indication of the actual basis on which the officials conducting survey recommended the complainant's compulsory registration. The complainant's representative, on the other hand, reiterated that his business was on a very small scale and the case in no way fell within the parameters regarding registration contained in section 14 of the Sales Tax Act. It was also contended that the complainant had applied for de-registration but the matter had not been decided by the respondent.
4. As is evident front the above the respondent has not been able to show, any real basis for the compulsory registration of the complainant's business and no attempt has been made to show that the complainant's case fell within the parameters of section 14 of the Sales Tax Act as existing at the relevant time. It is, therefore, recommended that---
(i) The facts of the case be re-examined by the Collector of Sales Tax, Peshawar and if the complainant's case is found not to fall within the relevant parameters of section 14, the case may be de-registered under the proviso to section 19 of the Sales Tax Act.
(ii) If -it is found that the complainant was not liable to compulsory registration and was, therefore, not required to file his sales tax returns, the penalty levied under section 33 of the Sales Tax Act be also deleted by the competent authority.
(iii) Compliance be reported within 30 days.