Law: Sales Tax Act, (III of 1951)

Section: 27,2(12),27(1)

Law: Constitution of Pakistan, 1973

Section: 199

Sales Tax Act (III of 1951)---Ss. 2(12) & 27(1)---Constitution of Pakistan (1973), Art.199--­Constitutional petition---Sales tax on caustic soda used for washing of empty bottles during relevant period---Refund of such sales tax---Validity---Petitioner was admittedly using soda caustic for cleaning bottles and as such, it was "partly manufactured goods" within meaning of S.2(12), Sales Tax Act, 1951; such item being constituent part of the article which was subject to tax and said partly manufactured goods were admittedly purchased by petitioner/manufacturer and tax having been paid on those goods on previous sale or sales, petitioner was entitled to its refund under S.27(1), Sales Tax Act, 1951---Petitioner had correctly and lawfully applied for the refund of the tax paid at the time of purchase of caustic soda and same was correctly refunded and adjusted---Authorities were acting illegally in holding claim of refund to be based on fraud and misrepresentation---Revenue Authorities were not supposed to suggest to petitioner to use hot water in cleaning bottles instead of caustic soda for such suggestion could amount to compelling petitioner to lower standard of hygiene being maintained by them of the article which was subject to tax---Petitioner was not liable to pay back specified amount as the same was legally claimed by it and was correctly refunded in terms of S.27(1), Sales Tax Act, 1951. Messrs Noorani Cotton Corporation v. The Sales Tax Officer "A" Ward, Lyallpur PLD 1965 SC 161 and Commissioner of Income-tax, East Pakistan v. Amin Jute Mills Ltd. PLD 1966 Dacca 456 ref. JUDGMENT The facts, out of which the present Constitutional petition arises, briefly stated, are as follows:--- The petitioner M/s. Murree Brewery Company Ltd., claimed refund of sales tax of Rs.13,244 paid on empty quarts and pints of beer sold, to diplomats and diplomatic missions during the period from November, 1984 to December, 1984 and also claimed refund of Rs.7,344 paid as sales tax on soda caustic used for p the washing of the empty bottles during the period from March, 1983 to August, 1984 and the said refund was adjusted in its account ­current register. In 1985, on the…

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