Law: Sales Tax Act, 1990

Section: 8

Law: Constitution of Pakistan, 1973

Section: 185(3)

Sales Tax Act (VII of 1990)---S. 8---Constitution of Pakistan (1973), Art.185(3)---Input tax paid---Entitlement to reclaim or deduct input tax paid---Assessees challenged legality of notification according to which they were held not entitled to reclaim or deduct input tax on goods which were not direct constituent and integral part of taxable goods produced by assessees, manufactured or supplied---Reliance was placed on an earlier notification---High Court, while comparing both notifications in juxta-position, found that second notification was valid only to the extent of goods specified in first notification, as a consequence of such finding assessees became entitled to reclaim said deduction---Assessees had directly approached High Court without there being specific denial on part of department of the claim to deduct input tax etc.; in the first instance they had to approach forums provided under Sales Tax Act, 1990 for the purposes before invoking constitutional jurisdiction---Petition was converted into appeal and decided in terms of passed in exactly similar other cases in which same notification was brought under challenge in civil petitions. JUDGMENT MUNIR A. SHEIKH, J.--- This petition for leave to appeal is directed against the judgment, dated 16-12-1998 of the Lahore High Court, Lahore, through which Writ Petition No. 5958 of 1998 filed by the respondents was partly accepted for the reasons recorded in the judgment passed in Writ Petition No. 9272 of 1998 decided on 2-10-1998. 2. The respondents challenged the legality of notification dated 20-12-1997 issued under subsection (1) of section 8 of the Sales Tax Act, 1990 according to which the said respondents were held not entitled to reclaim or deduct output tax on the goods which were not the direct constituent and integral part of taxable goods produced by the respondents, manufactured or supplied. Reliance was placed on an earlier notification, dated 1-7-1996 and the learned Single Judge while comparing both the notifications in juxta-position held that the second notification dated 20-12-1997 is valid only to the extent of the goods specified in the first notification, dated 1-7-1996 as a…

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