Law: Civil Procedure Code (V of 1908)

Section: 31

CIVIL PROCEDURE CODE, 1908 (V OF 1908)----Order XLI, Rule: 31 - Sales Tax Act, 1990, Entry 105 to the 6th Schedule to the Act - Appeal against judge in chamber - Contents, date and signature of judgment - Exemption - Import of raw materials - Whether the import of packing material, used in the manufacture of pharmaceutical products/drugs, is entitled to exemption from sales tax, as raw material, in terms of Entry 105 of the 6th Schedule to the Sales Tax Act, 1990? Question for determination - FACTS The crux of this case is whether the import of packing material, used to store, market and distribute pharmaceutical products/drugs, is entitled to exemption from sales tax, as “raw material”, in terms of Entry 105 of the 6th Schedule to the Sales Tax Act 1990 (“Act”). It was the case of the appellants (and also the petitioners herein) that packaging material employed to contain pharmaceutical products, including without limitation, cardboard, glass bottles, clear plastic and aluminum foil, ought to be extended the benefit of Entry 105 as inter alia without the same the relevant pharmaceutical products could not be distributed or sold. ARGUMENTS Per appellant’s/petitioners’ counsel, the decision arrived at vide the impugned judgment was erroneous and it was imperative that packaging be treated as raw material for the purposes of Entry 105 of the Act. This assertion was rested primarily on the arguments that the packaging ought to be considered as raw material used in the manufacture of pharmaceutical products; the said correlation is maintained and the benefit of exemption is available under the Customs Act 1969; the definition of raw material ought to be given its wider dictionary meaning; the word “and” mentioned in Entry 105 may be read as “or”; and unless an item is expressly taxed the same cannot be subjected to levy via a denial of exemption. The respondents’ case was articulated by Mr. Shahid Ali Qureshi and it was submitted that the impugned judgment merited no interference in appeal and that the petitions were devoid of merit. DECISION (a) No case made out to disregard statutory explanation and adopt some generic definition foreign to the statute itself - It…

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