Law: Sales Tax Act, (III of 1951)

Section: 27(1),7(1),7

(a) Sales Tax Act (III of 1951)---S. 7--Notification No.9, dated 27-6-1961, item No.33(a)--Sales Tax-�Cement Manufacturing plant--Allowance on account of Sales Tax paid on purchases of chemicals and explosives used In manufacturing cement-�With drawl of allowance--Except for goods specified in item 33(a), exemption on account of Sales Tax was not available of raw materials from which goods were manufactured--Cement allowed exemption from levy of sales tax by virtue of Notification No.9, dated 27-6-1951--Nothing in such notification would affect tax payable on raw materials i.e. chemicals and explosives from which cement manufactured--No refund, held was available on same. (b) Sales Tax Act (111 of 1951)-- ---S. 7--Notification No.9, dated 27-6-1951 item 33(a)--Sales tax and other levies on cement, after merger with Central Excise duty, lost their identity and existence with effect from date of merger. (c) Words and phrases-- ---"Merger" means extinguishments of right, estate, contract action etc. by absorption in another to be sunk in greater title. (d) Interpretation of statutes- ---Name of levy of tax as approved by national Legislature cannot be given any other name except name assigned to it by national Legislature. ORDER SIKANDAR HAYAT KHAN (MEMBER).--These three appeals at the instance of the department are directed against the Impugned orders of learned C.I.T.(Appeals) contained in Appeals Nos. 815, 953 and 884, dated 26-2-1981 and 9-9-1981. The only grievance of the department is that there was no justification with the learned C.I.T. (Appeals) to have allowed the respondent refund of sales tax on the purchase o: chemicals and explosives. It was stated that the respondent was not entitled to any exemption in view of Notification No.9 of 27th June, 1951 as cement was exempted from the levy of sales tax with effect from 11-6-1966. In this view of the matter, a prayer was made to restore the order of the Sales Tax officer in respect of the charge years 1973-74, 1975-76 and 1976-77. 2. The respondent, a public limited company, derives income from the manufacture of cement. It is owned and run by the Government of Pakistan. In respect of this…