Law: Sales Tax Act, (III of 1951)

Section: 27,27(1)

Sales Tax Act (III of 1951)---S.27(1) Claim for refund Proof of actual payment of sales tax condition precedent for entitlement to refund Words "tax has been so paid on those goods" used in S.27(1), held, indicated that in order to press into service provisions it was incumbent upon a licensed manufacturer claiming' refund of tax to prove factum of actual payment of tax on partly manufactured goods purchased by him Just to show that it was payable was, held, not enough. Messrs Tribunal Textile Mills Ltd. v. Commissioner of Sales Tax 1980 P T D 373: Messrs Pakistan Toilet Works v. Income tax Appellate Tribunal and another 1982 P T D 14 and Messrs Noorani Cotton Corporation and another v. Sales tax Officer, A Ward, Lyallpur and another 1965 P T D 273 ref. JUDGMENT AJMAL MIAN, J. This is a Sales Tax Reference, which raises the following question of law: "Whether the Tribunal was justified in law in holding that unless sales tax has been proved to have been paid no order of refund of the sales tax payable can be made on the presumption that sales tax has been paid at an earlier stage under section 2.' of the Sales tax Act." The brief facts leading to the filing of the above reference are that the applicant is manufacturer of the vegetable ghee. The applicant preferred a claim for the refund for Rs.6,79,491 on the purchases of Rs.52,07,143 of, cotton seed oil, made during the period commencing from 1-7-1964 to 30th April, 7.965: The Sales Tax Officer by his order dated 11-3-1967 rejected the applicant's above claim. The applicant being aggrieved by the above order filed an appeal, which was allowed by, the Appellate Assistant Commissioner by his order, dated 12-6-1967. The department being aggrieved by the above order filed appeal before the Income tax Appellate Tribunal, Karachi, Bench, Karachi (S.T.A. No.37/67 68) (assessment year 1964 65), which was allowed by an order dated 1-9-1970. The Income tax Appellate Tribunal upon an application under section 17(1) of the Sales Tax Act (hereinafter referred to as the Act) filed by the applicant framed the above quoted question for reference to this Court. 2. (a) Mr. Nizam Ahmed, learned counsel for the applicant in…

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