Law: Sales Tax Act, (III of 1951)

Section: 7,7(1)

(a) Sales Tax Act (III of 1951)---S. 7(1)--Notification No. 9 dated 27-6-1951, item No. 9--Exemption--" Hot-patches"-- Whether cycle accessories-Expression "accessory"- - Meaning--Hot-patches being very much covered by the expression "accessory" was exempt from sales-tax--Words "component and accessories"--Meaning. (b) Sales Tax Act (III of 1951)--S. 7(1)--Exemption--Onus on assesses to prove that his case fall strictly within the scope of exemption. (1963) 13 S T C 313 ref. JUDGMENT MUHAMMAD AFZAL CHEEMA, J.--These three Civil References (No.60 of 1967, No. 12 of 1970 and No.90 of 1971), made by the Income-tax Appellate Tribunal (Pakistan) Lahore under Section 17 (1) of the Sales-tax Act, 1951 (No. III of 1951) are connected matters involving the determination of the identical question of law, which has been formulated as under:- "Whether on the facts and circumstances of the case, the Tribunal was right in holding that hot-patches are exempt from levy of sales-tax under item No.9 of Notification No.9, dated 27-6-1951, issued by the Government of Pakistan Ministry of Finance (Revenue Division) under Section 7 (1) of the Sales-tax Act?" 2. The facts giving rise to the reference are that M/s. Lutfi and Company (Pakistan) Limited, Lahore, manufactured "hot-patches", which are handy pieces of rubber used for mending punctures having been processed with certain chemicals containing sticking material, which on being heated becomes readily applicable to the punctures. The assessees assertion that they were exclusively manufactured for mending cycle tubes does not appear to have been controverted at any stage. They claimed exemption of their declared turn-over in this regard from payment of sales-tax under item No.9 of Notification No.9, dated 27-6-1951 according to which inter alia "Cycle accessories" were not chargeable to sales-tax. Their contention before the Sales-tax Officer that "hot-patches" were a kind of "cycle accessories" was repelled by him on the ground that hot-patches "were not additional, subsidiary, adventitious contributing to or aiding the manufacture of cycles", that they did not constitute an item of equipment, secondary or non-essential and as…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492