Law: Sales Tax Act, (III of 1951)

Section: 3,7

(a) Sales Tax Act (III of 1951)- - Ss 3 & 7-Federal Government under S. 7, Sales Tax Act, 1951, held, not empowered to issue a notification with restrospective effect. (b) Sales Tax Act (III of 1951)--Ss. 3 & 7-Competency of giving notification retrospective effect-Held, authority conferred power of issuing notification in nature of delegated legislation not competent to give retrospective effect to a notification. JUDGMENT This judgment will dispose of Constitutional Petitions Nos. D. 3/82 and D-361/82, as the points involved in both these petitions filed against the Central Excise & Land Customs Authorities are the same. These petitions involve the consideration and interpretation of two notifications, issued by the Government of Pakistan, relating to levy of sales-tax on cassettes. We have heard Mr. Iqbal Naim Pasha learned counsel for the petitioners in Constitutional Petition No. D.3/82, Mr. Kanwar Mukhtar Ahmad, learned counsel for the petitioner in Constitutional Petition No. D. 361/82 and Mr. Syed Inayat Ali, who has appeared on behalf of the respondents in both the petitions. 2. The first Notification is S. R. O. 666 (1)/81, dated 26-6-1981 issued under section 7 of the Sales Tax Act, 1981. By the said notification dated 25-6-1981, the Federal Government exempted certain goods produced of manufactured in Pakistan including the following: "S. No. 76 Description of goods-Cassettes for sound recording and recording recitation from the Holy Quran falling under heading No. 92.11." According to the petitioners, by virtue of the above-mentioned notification dated 25-6-1981, all cassettes for sound-recorders produced or manufactured in Pakistan were exempted from sales-tax. The interpretation of the department on the other hand is that only such cassettes which bad recordings of recitation from the Holy Quran were exempted from sales-tax and all other cassettes were subject to sales-tax. 3. During November and December, 1981 the staff of the Central Excise and Land Customs Authorities seized a large number of assembled and non-assembled cassettes belonging to the petitioners in these two petitions inter ails on the ground that the petitioners were…

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