Law: Constitution of Pakistan, 1973

Section: 185(3)

Constitution of Pakistan (1973)-­-Art. 185(3)--Pakistan Custom Tariff Heads 21.07 & 33.04--Concentrates imported from abroad being chief ingredients in preparation of R. C Cola Beverage and not merely odoriferous substances, fall under head 21.07--While upholding such view of High Court, leave to appeal refused by Supreme Court. ORDER NASIM HASAN SHAH, J.--The petitioner-Company is engaged in the manufacture of a Beverage known as R.C. Cola. This Beverage is prepared from two kinds of concentrates, which are imported from a Company situated in the United States of America. The question falling for consideration in this petition is whether these concentrates fall under head 21.07 of the Pakistan Custom Tariff or under head 33.04 thereof? It is relevant to mention that the sales tax on articles falling under head 21.07 is leviable at the rate of 20%, while that in respect of articles falling under the other head is leviable at 10% only. Head 21.07 to the extent relevant reads as follows:- "Food preparation not elsewhere specified or included. A. Flavouring powders and. concentrated extracts for the Preparation of food and beverages ---------"­ While head 33.04 is as follows:- "Mixtures of two or more odoriferous substances (natural or artificial) and mixture (including alcoholic solutions) with a basis of one or more of these substances of a kind used as raw Materials in the perfumery, food, drink or other industries." ` The High Court has found that the Beverage in question is covered by head 21.07 and does not come under the purview of head 3304. In this connection, it has observed that: "in head 33.04 the key word is 'odoriferous' According to the dictionary it means yielding or diffusing an odour, especially a fragrant one. On examining the composition of concentrates imported by the petitioner, as disclosed by itself, it does not appear that they are intended to be used in the beverage merely for the purpose of imparting a pleasant smell to them. In fact, they are the chief ingredients of the beverages and all that the petitioner…

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