Law: Sales Tax Act, (III of 1951)

Section: 2(11),2(15),3

(a) Sales Tax Act (III of 1951)------Ss. 2(11), (15) & 3--="Manufacturer"---Definition---Retreading of tyres being not manufacture but repair, would not constitute sale so as to attract section 3 of the Act The assessees are engaged in the business of retreading of tyres. According to the assessees they receive worn out tyres from the customers, repair, re-service and retread them and receive only repair charges. [p. 366] E "Manufacture" generally connotes conversion of something and bringing into existence a new substance. By this process the character of a commodity is transformed into a new article. [p. 369] C A "manufacturer- is a person who engage( in the manufacture of goods. Certain specified persons have also been included in the category of manufacturers. The assessees retread tyres. They do not manufacture any specified goods. The ordinary meaning of "manufacture" is a process of making of an article or material by application of physical labour or mechanical power. The assessees do not manufacture the goods but repair it. The definition of "manufacture" is to be read in conjunction with the definition of "sale' mentioned in section 2 (15) of the Act and it means "every transfer of the property in goods from one person to another in the course of trade or business". In order to constitute a "sale", there must be transfer of goods or property. In the present case, the assessees had returned the same goods to the owner after charging for the repair and the work done by them. There is no sale of the goods so as to attract the Sales Tax Act. We may also refer to section 3 of the Act which is the charging provision and section 3 (i) (°a) contemplates that there should be levied and collected a tax on the value of goods produced or manufactured in Pakistan payable by the manufacturer or producer. The goods manufactured and sold are liable to sales tax. The definition is quite clear as the goods are not produced or manufactured by the assessees, the tax is not leviable. The assessees are not engaged in the business of manufacture of new goods which attracts the charging provisions of the Act, as the duty is to be imposed on the manufacture of goods.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492