Law: Sales Tax Act, (III of 1951)

Section: 7

Sales Tax Act (III of 1951)---S. 7---Sales tax---Exemption---Withdrawal of exemption with retrospective effect---Validity---Exemption granted under Sales Tax Act, 1951, which regulated levy of sales tax was a separate and distinct enactment---Facts which had occurred prior to the date of notification whereby exemption from sales tax was withdrawn, clearly established that petitioners had acquired vested rights in the exemption under the notification applicable at that time---Such acts including contractual commitments made by petitioners were done on the assurance contained in the earlier notification extending exemption from payment of Sales Tax---Vested right having thus been created in favour of petitioners, subsequent withdrawal of exemption could not 'be given retrospective operation by an executive act to discharge that right---Petitioners were thus, entitled to claim exemption from Sales Tax in circumstances. 1984 PTD 216 ref. JUDGMENT HAIDER ALI PIRZADA, J.---In these ten Constitution Petitions the common question that arises for consideration is whether the withdrawal of exemption under section 7 of the Sales Tax Act, 1951 with effect from 26-6-1988 would not be given effect to retrospectively so as to infringe the petitioner's vested rights which accrued to them when they made payments and opened Letters of Credit prior to 26-6-1988. As the facts are not in dispute in these matters, it is not necessary to state the facts in each one of them. It will suffice if we refer to the relevant facts in Const. Petition No.D-929 of 1988. The petitioner is an industrial importer registered under the Import Export Control Act and uses inedible Tallow (hereinafter referred to as "TALLOW") in the manufacture of its products etc. The Tallow is allowed to be imported by the respondent No.1 on the free list of Imports, and that at material times it was exempted from levies of Sales Tax. The petitioner agreed to purchase from COLYER FEHR TALLOW-PTY-LTD. 49-51, YORK STREET, G.P.O. Box No.2545 Sydney, Australia, 250 M/Tons of Tallow at U.S. $.400 per Metric Ton, May/June, 1988 against shipment vide indent No. R.C. 1/102/CFT/4040. On the basis of the contract of purchase…

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