Law: Sales Tax Act, 1990

Section: 3,3(1A),7,7(1),8,8(1)(b),8(b),47,73

Sales Tax Act (VII of 1990)----Ss. 3, 7, 8 & 47--Reference--Input tax--Adjustment--Packing material--Zero rated supply--Petitioner / company was aggrieved of bar imposed on input tax credit or refund on packing material purchased by registered person whose taxable supplies were zero ‘ rated--Validity--Provision of S. 3 of Sales Tax Act, 1990, is a charging section, whereas S. 7 of Sales Tax Act, 1990, allows input adjustment to a registered person for the purpose of determining tax liability in respect of taxable supplies, when such person has paid input tax for the purpose of taxable supplies made or to be made by him from the output tax i.e. due from him--Mandate of S. 7(1) of Sales Tax Act, 1990 is allowing input adjustment on such goods which are used for the purpose of taxable supplies--Federal Government, under S. 8(b) of Sales Tax Act, 1990, has been given power to notify any other goods in official Gazette against which input adjustment cannot be allowed-- Federal Government has no jurisdiction to create and insert a new class in the regime of Sales Tax Act, 1990, which can disentitle input adjustment which is otherwise allowable to a registered person under a statutory dispensation i.e. S. 7 of Sales Tax Act, 1990--Input adjustment to a registered person against goods, which are or would be used for taxable activities, has been allowed under S. 7 of Sales Tax Act, 1990--Packing material purchased by petitioner / company was used for the purpose of taxable supplies, therefore, petitioner / company was entitled to adjust input tax against its output tax-- Reference was disposed of accordingly. Sheikhoo Sugar Mills Ltd. v. Government of Pakistan and another 2001 SCMR 1376; The Commissioner Inland Revenue, Karachi v. Messrs Attock Cement Pakistan Limited, Karachi 2023 SCMR 279; Ghandhara Nissan Diesel Ltd., through- Sr. General Management Finance, Karachi v. Collector, Large Tax Payers Unit, Government of Pakistan, Karachi and 2 others 2006 PTD 2066; The Central Board of Revenue, Islamabad and others v. Sheikh Spinning Mills Limited, Lahore and others 1999 SCMR 1442; Messrs Sheikh Spinning Limited v. Federation of Pakistan through Ministry of Finance,…

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