Law: Sales Tax Act, (III of 1951)

Section: 4,4(a)

Sales Tax Act (III of 1951)--S. 4 (a)--Assessee a limited company engaged in manufacture of yarn and cloth which was partly exported out of Pakistan ­Company manufactured yarn from ginned cotton and cloth from yarn so manufactured in its mills-Assessee, held, was liable to pay sales tax in respect of raw materials of ginned cotton and cotton yarn used in manufacture of cotton yarn and cotton cloth, respectively which were exported outside Pakistan. The finished goods i. e. yarn and cloth were exempted from the levy of sales tax on export and the raw materials used in the finished goods and exported abroad i. e. ginned cotton used in the manufacture of yarn and the yarn used in the manufacture of the cloth were not exempted from the payment of sales tax. They cannot be treated as partly, manufac­tured goods within the meaning of section 4 (a) of the Act, to clam exemp­tion in the facts and circumstances of the case. Assessee was, therefore, liable to pay sales tax in respect of raw ma­terials of ginned cotton yarn used in the manufacture of cotton yarn and cotton cloth respectively which were exported outside Pakistan. Gul Ahmed Textile Mills Ltd. v. Commissioner of Sales Tax (Central) Karachi 1984 P T D 211; Messrs Noorani Cotton Corporation v. Sales Tax Officer 'A' Ward Lyallpur P L D 1965 S C 161 ; Latif Bawani Jute Mills Ltd. and 4 others v. Sales Tax Officer Companies Circle 1 Dacca 1971 P T D 26 and Messrs Paracha Textile Mills v. Commissioner of Income-tax 1980 P T D 17 ref. JUDGMENT TANZIL-UR-RAHMAN, J.--The following question has been referred to this Court by the Income-tax Appellate Tribunal, Karachi Bench, Karachi: "Whether on the facts and circumstances of the case the Tribunal was justified in law in holding that the assessee was not liable to pay sales tax in respect of the raw materials of ginned cotton and cotton yarn used in the manufacture of cotton yarn and cotton cloth, respectively which were exported outside Pakistan?" 2. The facts giving rise to this Reference are that the respondent is a limited company, which manufactured yarn and cloth, which was partly exported out of Pakistan. It manufactured yarn from ginned cotton and cloth from…

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