Law:

Section:

Sales Tax Act (VII of 1990)--- ----S. 2(41)---Special Procedure for Collection and Payment of Sales Tax (Electric Power) Rules, 2000, Rr.2(1)(h) & 4---Electricity produced by the generation company, supplied for self-consumption and utilized in non-business use, will be taxable activity and its supply for self-consumption will be subject to levy of Sales Tax. Haji Sultan Ahmed v. Chairman, C.B.R. Islamabad and 5 others 2008 PTD 103; Sheikhoo Sugar Mills Ltd. v. Government of Pakistan and others 2001 SCMR 1376 = 2001 PTD 2097 and Karachi Development Authority v. Central Board of Revenue and another 2005 PTD 2131 ref. JUDGMENT SYED HAMID ALI SHAH, J.---This single judgment shall deal with and decide S.T.R. Nos. 20 of 2007 and 2 of 2008 involving common questions of law. 2. Sales tax record of the petitioner was audited for the period 2001-2002 and 2002-2003. Various irregularities were pointed out and the controversy was resolved in appeal before the Customs, Central Excise and Sales Tax Appellate Tribunal, in favour of the registered person. Learned Tribunal upheld the decision of Collector (Appeals) and held that demand of sales tax on electricity consumed in the housing colony etc., amounting to Rs.4,33,741 falls within the definition of taxable supply, as envisaged in section 2(41) of the Sales Tax Act and chargeable to Sales Tax. 3. Petitioner raised following questions of law, in this tax reference, statedly arising out of the judgment of learned Tribunal:- (i) Whether under the law arid circumstances of the case, the Honourable Appellate Tribunal was justified in confirming the Order-in-Appeal No.245 of 2006, dated 4-4-2006 passed by the Collector (Appeals) to the extent of self-consumption of electricity by the Applicant in the house colony at applicant's plant-site? (ii) Whether under the law and circumstances of the case, the Honourable Appellate Tribunal was justified in holding that self-consumption of electricity in housing colony etc. at Applicant's plant-site falls within the definition of "taxable supply" given in clause (41) of section 2 of the Sales Tax Act, 1990 read with the definition of term "Generation" given in clause (h) of Rule 2(1)…

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