Law: Sales Tax Act, 1990

Section: 3,2(3),2(46)13,Sched

Sales Tax Act (VII of 1990)--Ss. 3, 2(3), 2(46) 13 & Sched.---Constitution of Pakistan, Art. 199---Constitutional petition---Scope of sales tax---Supplies---Exemptions---"Supply of books", and "printing services"---Distinction---Exemption available to textbooks did not extend to printing services---Taxpayer was Textbook Board engaged in the publishing and supply of textbooks---Taxpayer was served with a show cause notice on the ground that no sales tax was collected or withheld from printers, and subsequently an assessment order was passed against the taxpayer---Contention of the taxpayer/Textbook Board was that under the provisions of the Sales Tax Act, 1990 newspapers, books, journals, and periodicals were exempted from sales tax, and the process of printing was part and parcel of a book, and was therefore also exempted from sales tax Validity---Process of printing was not excluded from the definitions envisaged in Ss. 2(c), 2(33) and 2(46) of the Sales Tax Act, 1990 and it was evident on record that the Textbook Board was also engaged in the procurement of textbooks from different printers and dealt in purchase of miscellaneous taxable times used in printing and publishing of books---Supply of books and printing services were altogether different functions and S. 3 of the Sales Tax Act, 1990 provided exemption on the supply of books but did not exempt printing services provided by different printers and vendors---Any exemption provided to printers under garb of Sixth Schedule to the Sales Tax Act, 1990 would be a sort of amendment in the Act, and the Textbook Board was not vested with the power to extend exemption to a third person, that was the printing service providers---Textbook Board, if had printed textbooks on its own, then it might claim the exemption provided by the Sales Tax Act, 1990----Where the taxpayer Textbook Board paid tax on the purchase of paper from a third party, then printing services, particularly provided by private printers could not be exempted from the levy of tax; and it was an admitted fact that the Textbook Board every year paid a huge amount to the printers on account of only printing services and raw materials which…

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