Law: Sales Tax Act, 1990

Section: 2(46),2(46)(g)

Law: Customs Act, 1969

Section: 25

JUDGMENT ABID AZIZ SHEIKH, JUSTICE :---.--- In this constitutional petition, the petitioner has challenged the vires of SRO/Notification No.812(I)/2016 dated 02.09.2016 (hereinafter referred to as notification), whereby value of white crystalline sugar was fixed at the rate of Rs.60/- per K.G. 2. Relevant facts are that petitioner is involved in the manufacturing of white crystalline sugar. The Federal Board of Revenue (respondent No.2) in the exercise of powers under first proviso to clause (46) of section 2 of the Sales Tax Act, 1990 (Act), issued impugned notification whereby the value of domestically produced white crystalline sugar has been fixed at the rate of Rs.60/- per K.G. The petitioner being aggrieved has filed this constitutional petition. 3. The learned counsel for the petitioner submits that open market price of the white crystalline sugar being much lower than the value fixed by respondent No.2 in the impugned notification, the petitioner cannot be forced to pay sales tax on the said fixed price. He further submits that first proviso to subsection (46) of section 2 of the Act under which impugned notification was issued, relates to taxable supply of goods mentioned in third Schedule of the Act, with reference to retail tax mentioned under clause (g) of section 2(46) of the Act and it is not an independent proviso to the main section 2(46) of the Act. Adds that white crystalline sugar being not included in 3 Schedule subject to retail tax, the value could not be fixed in respect of white crystalline sugar under the impugned notification. He further submits that clause (g) of section 2(46) is immediately preceding to the first proviso, therefore, said proviso shall be deemed to be part of clause (g) only. He placed reliance on K.E.S.C. Progressive Workers Union through its Chairman and others vs. K.E.S.C. Labour Union through its General Secretary and others (1991 SCMR 888) and Collector of Custom Appraisement, Collectorate Customs House Karachi vs. M/s Gul Rehman Proprietor, M/s G. Kin Enterprises (2017 SCMR 339). 4. Learned counsel for the respondents on the other hand submits that impugned notification was issued under first proviso to section…

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