Law: Sales Tax Act, 1990

Section: 4

Sales Tax Act (VII of 1990)---S. 4---Electricity meters---Equipment eligible for zero rating of sales tax under SRO No. 530(I)/2005 dated 6-6-2005 (‘the SRO’)---Plea by tax department that electricity meters are consumer durables and are not eligible for classification as equipment and hence not covered by the SRO---Held, that metering equipment can be used 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 at the taxpayer’s premises---High Court and the Tribunal had rightly found that electricity meters are equipment eligible for zero rating under the terms of SRO No. 530(I)/2005 dated 6-6-2005---Petition for leave to appeal was dismissed and leave was refused. Sindh Institute of Urology v. Federation of Pakistan 2017 PTD 603 ref. ORDER: UMAR ATA BANDIAL, JUSTICE:---.--- The learned High Court by Judgment dated 24.04.2017 upheld the view taken by the learned Tribunal dated 13.08.2010 to hold that the electricity meters are equipment eligible for zero rating under the terms of SRO 530(I)/2005 dated 06.06.2005. The arguments advanced by the learned counsel for the Commissioner Inland Revenue is that electricity meters are consumer durables and are not eligible for…

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