Law:

Section:

(a) Sales Tax Act (VII of 1990)--- ----Ss.2(12)(35)(41), 3, 7 & 47---Constitution of Pakistan (1973), Art.25---S.R.O. No.578(I)/98, dated 12-6-1998---Sale of fixed assets--­Chargeability to tax---Tribunal had found that no sales tax was leviable on disposal of fixed assets owned by assessees, since they were not trading in the items they had sold---Contention of the Authority was that such disposal constituted a "taxable activity" and it was irrelevant as-to whether assessees undertook the activity for profit motive or not, thus, such sale was chargeable to tax under S.3 of the Sales Tax Act, 1990--­Validity---Under S.3 of the Sales Tax Act, two conditions must be fulfilled independently for creating the charge of sales tax i.e. transaction of sale must constitute a "taxable activity" and the same should also be a "taxable supply"---Where one of such conditions was missing, the charge of sales .tax would not be leviable ---Expression "any, activity carried on in the form of a business, trade or manufacture" as used in S.2(35) of the Sales Tax Act, was an independent ingredient of the term "taxable activity "---Since assessees were not engaged in the business, trading or manufacturing of commodities, which they had sold i.e. fixed assets would not constitute "taxable activity"; second ingredient of S.3 of the Act i.e. "taxable supply" was also absent in the present case---To constitute a "taxable supply", the transaction must first qualify to be a "supply" and to constitute "supply" the transaction must be in 'the "furtherance of business" ---Term "business" had not been defined in the Act, and in order to be construed as "business", the activity must be recurring for profit- motive and in the nature, of trade, commerce or manufacture---Disposal of fixed assets in the present case could not be construed as an activity for profit motive or in the nature of .trade, commerce or manufacture, thus, the same was not an `activity in furtherance of "business" ---Assessee did not trade in or manufacture the fixed assets, thus, the same did not constitute "supply" under S.2(33) of the Act and could not be construed as "taxable supply" under S.2(41) of the Act---Fixed…

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