Law: Sales Tax Act, 1990

Section: 13,SixthSched,42,43

Law: Constitution of Pakistan, 1973

Section: 199

Sales Tax Act (IX of 1990)---S.13 & Sixth Sched., Items 42 & 43--S.R.O.105(I)/97, dated 13-2-1997-­Constitution of Pakistan (1973), Art. 199---Constitutional petition--­Exemption---Import of raw material for manufacture of pharmaceutical products---Withdrawal of exemption vide S.R.O. No. 105.(1)/97, dated 13-2-1997---Effect---Held, nature of S.R.O. 105(1)/97, dated 13-2-1997 being beneficial effect of notification of withdrawal was not to take away the exemption itself but to remove the restrictions placed for availing of the exemption---Authorities, therefore, had no lawful authority to demand sales tax on the imported pharmaceutical raw material covered by Items 42 & 43, Sixth Sched. of the Sales Tax Act, 1990. The relevant items of the 6th Schedule are in two parts, first grants an exemption from the payment of customs duty and the second part lays down conditions subject to which that exemption is to be availed of in case the goods are imported. In that behalf, originally the condition laid down was that in the case of imported goods the importer has to fulfil the same condition in order to avail of the exemption as would be requirement in case of claim of exemption from the customs duty. Subsequently, the exemption from the customs duty stood withdrawn with the consequence that in order to avail of the exemption under the Sales Tax Act, 1990 the importer was no longer required to fulfil the same conditions as he would have been required to do in case of import from abroad under the Customs Act, 1969. The effect of the amendment in the relevant items of the 6th Schedule of the Sales Tax Act, 1990 was not to take away the exemption itself but to remove the restrictions placed for availing of the exemption. The amendment appears to be beneficial in nature. The Authorities had no lawful authority to demand sales tax on the imported pharmaceutical raw material covered by Items 42 and 43 of the Sales Tax Act, 1990. JUDGMENT This judgment shall dispose of Writ Petitions Nos.29612 of 1997, 2222 of 1998, 1492 of 1993, 1684 of 1998 and 2077 of 1997, in all of which same question arises for determination. 2. The petitioners in all these petitions are…

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