Law: Sales Tax Act, (III of 1951)

Section: 7,7(l)

Sales Tax Act (III of 1951)--- S. 7(l) read with Federal Government Notification No. 9 dated 27-6-1971, item No- 106 as amended by Notification No. SRO-823(1)/73, dated 9-6-1973-lce-cream--Exemption---Notification dated 27-6-1971 Cannot be interpreted on basis of dictionary meaning---Particular words used by Legislature in denomination of articles--To be understood according to commercial understanding of terms used and not in their essential or technical sense--Product "ice-cream"--Held, not exempt from payment of Sales Tax within meaning of Notification dated 27-6-1971.Qazi Abdul Majid v. Province of Sind P L D 1976 Kar. 600; Shorter Oxford English Dictionary, Vol. 1, 3rd Edn., p. 409; Webster's New International Dictionary, Vol. 1, 2nd Edn., p. 620; Chamber's 20th Century (Revised 1979 Edn.); C: B. R.'s Circular No. 2(72 dated 6-1-1972; (1975) 31 Taxation 14 (Trib); Hirjina & Co. Ltd. v. Commissioner of sales Tax 1971 S C M R 128; Usmania Glass Sheet Factory v. Sales Tax Officer P L D 1971 S C 205; Craies on statute law', Attorney-General v. Bailee (1847) 1 Ex. C .C 28; and His Majesty the king: V planters Nut & Chocolate Company Ltd.1951 Ex. C R 122 ref.JUDGMENT S. A. NUSRAT, J.-The petitioner, which is a Company incorporated under the Companies Act, 1913, carries on the business of manufacture and sale of `Igloo' brand ice-cream. Formerly, ice-cream was manufactured and sold in East Pakistan by a sister concern of the petitioner when, allegedly no sales tax was charged thereon. The petitioner having commenced the same business in West Pakistan was called upon by the Sales tax Officer through a notice dated 16-3-1976 to show cause against the intended imposition of penalty for not having filed quarterly sales tax returns as required under section 10(1) of the Sales Tax Act, 1951 (hereinafter referred to as the Act). In its reply dated 16-10-1976 to the show-cause notice, the petitioner claimed that ice-cream was exempt from payment of sales tax by virtue of Notification S. R. O. No. 475(x)/65 dated 14-6-1965 as amended by Notification S. R. O. 823(1)/73 dated 9-6-1973. This plea was rejected by the. Sales Tax Officer as per his letter dated…