Law: Sales Tax Act, 1990

Section: 3,11(3),25,36,46,71,72B

Law: Constitution of Pakistan, 1973

Section: 189

Law: Income Tax Ordinance, 2001

Section: 214C

(a) Interpretation of statutes---Taxing statutes-One can only look for intendment or language used in law and there was no room for intendment or presumption on interpretation of law-Person sought to be taxed could only be taxed when he came within letter of law. (b) Sales Tax Act (VII of 1990)----Preamble & S.3-Nature, purpose and scope of Sales tax-Sales tax, in its present shape for all practical purposes was similar to value added tax and was generally called also consumer's tax-Such tax was ultimately charged from buyer and even if there was any transaction in between among manufacturer, distributor, wholesaler and consumer, said tax would pass on to ultimate consumer-Sales tax was an indirect tax with its ultimate impact on consumers, therefore, liabilities under Sales Tax Act, 1990 could not be worked out in a fanciful manner based on mere surmises, estimates and conjectures and by adopting self-devised formate having no legal support-Where taxpayer was not the buyer of cars and he was operating as an agent to whom commission was paid for rendering of intermediary services and goods were sold directly to consumers after receiving price of car through agent, sales tax liability on sale/purchase of cars should be zero on part of such tax payer. (c) Sales Tax Act (VII of 1990) ---- S. 3 & Chapter-II-Scope of tax for retailer-Retailer operates under Chapter II of Sales Tax Act, 1990 and not only paid tax under Chapter II of Sales Tax Act, 1990 but was also liable to pay tax at standard rates when sales/supplies were made to a person who deducted income at source under the Income Tax Ordinance, 2001-Such supplies would be subjected to tax at a standard rate under S. 3 of Sales Tax Act, 1990 and supplier would be entitled to deduction of input tax on purchase of goods so supplied at standard rates. (d) Sales tax---- "Retailer" and "final consumer of goods"-Meaning-Words and phrases occurring in a provision of law were not to be taken in an isolated or detached manner, disassociated from the context -Such words and phrases were to be read together and construed in light of overall context of provision-Expression…