Case Details

Citation(s)
2001 SLG 724 2001 SLD 724 = 2001 PTCL 331 2001 PTD 2097 (2001) 84 TAX 229 2001 SCMR 1376
Supreme Court of Pakistan
Civil Appeals Nos. 1805 to 1811 of 1998, 1392, 1417, 1418 of1999, 2, 22, 129, 488, 489 and Civil Petitions Nos.386 L,526 L and 700 L of 2000, decision dated: 27-02-2001. datesof hearing: 8th, 9th and 10-01-2001
IFTIKHAR MUHAMMAD CHAUDHRY AND MIAN MUHAMMAD AJMAL, JJ
Alf Sibtain Fazli, Advocate Supreme Court, Imtiaz Muhammad Khan, Advocate-on-Record and M.A. Qureshi, Advocate-on-Record for Appellants (in C. As. Nos. 1805 of 1998, 2 and 22 of 2000, C. Ps. Nos.386L and 700L of 2000)Raja Muhammad Akram, Senior Advocate

SHEIKHOO SUGAR MILLS LTD. and othersvsGOVERNMENT OF PAKISTAN and others

Law: Sales Tax Act, 1990

Section: 3,,2(35)(41)(44),(46),),(16),(17),(35).( 41),(44),(46),7,13

Law: Constitution of Pakistan, 1973

Section: 185(3),FourthSched.

 

(a) Sales Tax Act (VII of 1990)‑‑‑

 

‑‑‑‑Ss.3, 2(35)(41)(44) & (46)‑---‑ Constitution of Pakistan (1973),.Art.185(3) & Fourth' Sched., Federal Legislative List, Part I, Items Nos.49 & 59‑‑ Bagasse‑‑‑Levy of sales tax‑‑‑Validity‑‑‑Leave to appeal was granted by Supreme Court to examine the questions as to whether in view of the fact that the Sugar Mills (petitioners) were consuming ' Bagasse' and no third person was involved in the sale thereof, the Sugar. Mills were liable to the payment of sales tax on 'Bagasse'; whether within the ambit of S.3 of the Sales Tax Act, 1990; being the charging section, "taxable activity", "taxable supply"; "time of supply" and "value of supply" respectively defined in S.2(35), (41), (44) & (46) of the Sales Tax Act, 1990 could be equated with the process of 'sale' even notionally and whether the High Court was correct in observing that the effect of joint reading of Items Nos.49 & 59, Part I of the Federal Legislative List in the Fourth Sched. of the Constitution was that the Sugar Mills could be made to pay sales tax on "Bagasse" in the presence of the exemption to take effect during the financial year in question i.e. 1‑7‑1996 to 30‑6‑1997 in that the same was rescinded during its currency, on 30‑6‑1997.

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