Law:

Section:

(a) Sales Tax Act (VII of 1990)--- ----Ss.2(33), 2(41), 3, 6, 22, 23, 26, 33 & 34---Constitution of Pakistan (1973), Federal Legislative List, Entries 49 & 51---Evasion of sales tax-­Imposition of additional tax and penalty ---Assessee had claimed that no sales tax had ever been levied by the Legislature on limestone and clay in natural stage as used in the manufacture of cement that simply digging/excavating limestone and clay and then shifting the same in their natural state to the kiln did not fall within definition of the word 'manufacture' as used in S.2(16) of Sales Tax Act, 1990---Validity--­Notwithstanding the fact that minerals like limestone, clay and gypsum were self-supplied/self-used, they were deemed to be `taxable supply' as defined in the Sales Tax Act, 1990 and covered under Entry 49 of the Federal Legislative List, Part I, Fourth Sched. of the Constitution of Pakistan---Limestone and clay which was self-excavated was taxable goods by itself--Limestone and clay was an intermediary produce which was manufactured/produced during the process of excavation for furtherance of taxable activity, therefore, it was liable to sales tax under S.3 of the Act---Limestone and clay was an identifiable/marketable goods on which tax could be levied, therefore, once taxable goods had been supplied by a person to itself, same would fall within the definition of `taxable supply' notwithstanding the fact whether the sales had taken place or not between two persons but the fact remained that the excavation and bringing the limestone and clay to the factory constituted a taxable supply during the process of taxable activity---Taxable activity covered any forms of those taxable activities which were even carried on by one person for his own business---Impugned order- was maintained in the circumstances by the Tribunal. (b) Sales Tax Act (VII of 1990)--- ----S.2(41)---`Taxable supply'---Connotation---Once a taxable goods has been supplied by a person to itself, same would fall within definition of `taxable supply' notwithstanding the fact whether the sales has taken place or not between two persons. (c) Sales Tax Act (VII of 1990)--- ----S.2(35)---"Taxable…

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