Law: Sales Tax Act, 1990

Section: 2(26),3,13,45,46

Law: Constitution of Pakistan, 1973

Section: FourthSched

Sales Tax Act (VII of 1990)---Ss. 2(26), 3, 13, 45 & 46---Constitution of Pakistan (1973), Fourth Sched., Entries Nos. 49 & 51---Excavation and supply of Gypsum--­Chargeability to sales tax---Authority made demand on supply of Gypsum by respondent to a company--- Respondent's explanation was not accepted by Authority and was made liable to pay sales tax on such supply---First appeal filed by respondent was dismissed, but Appellate Tribunal set aside the order holding that sales tax was not leviable on Gypsum, which was a kind of mineral and did not fall within the legislative competence of Federal Government---Validity---Sales tax was a kind of tax, which had been levied by Legislature within the ambit and, scope of Entry No.49 of the 4th Schedule of the Constitution---Sales tax was a tax on supply of taxable goods, but not a kind of tax on any mineral activities---Gypsum after its excavation from the mine became a movable property and its further supply by respondents to another buyer constituted a taxable supply as it was not exempt under S.13 of the Sales Tax Act, 1990---Such taxable- supply became chargeable to sales tax--­Merely because Gypsum had been produced through process of excavation and quarried from the mine and was defined as minor mineral, would not be of any significance, when after excavation the same became taxable goods and was made to subject of taxable supply--­Tribunal had not correctly held that levy and charge of sales tax on Gypsum was ultra vires, thus, High Court set aside its . JUDGMENT MANSOOR AHMAD, J.---This sales tax appeal arises out from the judgment, dated 22-12-2000 rendered by Custom Excise. and Sales Tax Appellate Tribunal, Lahore. 2. Facts giving rise to the present appeal are that a contravention ease was made out by the Sales Tax Department against Messrs Rehman and Rafiq Gypsum, Warcha Road, Quaidabad, District Khushab. 3. A show-cause notice was issued and it was stated in the notice that respondent supplied 3107 M. Tons of Gypsum valuing Rs.6,67,785 whereby sales tax of Rs.83,473 was chargeable but the respondent did not get itself registered under the Sales Tax Act, 1990 and evaded to pay the required sales…

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