Law: Sales Tax Act, 1990

Section: 4

SALES TAX ACT, 1990 (VII OF 1990) Section 4 Electricity meters are classifiable as equipment used in the operation of the industrial process at the tax payers premises and are eligible for zero rating.-The argument advanced by the learned counsel for the Commissioner Inland Revenue is that electricity meters are consumer durables and are not eligible for classification as equipment. The learned Appellate Tribunal has quoted that the International Electro Technical Commission Switzerlands publications such as International Standards IEC 62052-11, 1EC 62053-11, and IEC 62053-23 which categorically described ˜electricity meters as electricity metering equipment. To our minds metering equipment can be for different purposes. In relation to machinery, equipment that measures temperature, speed, pressure etc. are also in the nature of metering equipments. Undeniably power supply is a crucial factor for the operation of plant and machinery. Therefore, electricity meters are classifiable as equipment used in the operation of the industrial process of the tax payers premises. Reference is made to the case of Sindh Institute of Urology Vs. Federation of Pakistan (2017 PTD 603) which goes against the interpretation urged by the petitioner. The view taken in the said has been upheld by the Court in its dated 31 02.20-0 passed in Civil Appeal No. 737 of 2016 titled Federation of Pakistan and others Vs Sindh Institute of Urology Transplant others. In view of the foregoing, this petition is dismissed and leave to appeal is refused. WORDS AND PHRASES Metering equipment.-Metering equipment can be for different purposes. In relation to machinery, equipment that measures temperature, speed, pressure etc. are also in the nature of metering equipments. ORDER: MR. JUSTICE UMAR ATA BANDIAL:---.---- (1). The learned High Court by Judgment dated 24 04 2017 upheld the view…

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