| Citation(s) |
|---|
| 2007 SLG 295 2007 SLD 295 = 2007 PLD 517 (2007) 96 TAX 105 2007 PTCL 565 = 2007 PTR 61 |
Supreme Court of Pakistan
Civil Petitions Nos.2687 to 2696 of 2001, Civil AppealsNos.551 and 552 of 2002, Civil Appeals Nos. 2087 to 2094 of2004, Civil Appeal Nos.791 decided on 5-03-2007. dates ofhearing: 1st and 2-03-2006
IFTIKHAR MUHAMMAD CHAUDHRY, C.J., FAQIR MUHAMMAD KHOKHAR AND MIAN SHAKIRULLAH, JAN, JJ
Nemo for Appellant (in C.A. No. 791 of 2005). Raja Muhammad Akram, Senior Advocate Supreme Court for
Respondents (in CMA No. 2628 in C.A.No. 152 of 2005). Muhammad Akram Sheikh, Senior Advocate Supreme Court with M.A. Zaidi, Advocate-on-Record for Respond
Civil Petitions Nos.2687 to 2696 of 2001, Civil AppealsNos.551 and 552 of 2002, Civil Appeals Nos. 2087 to 2094 of2004, Civil Appeal Nos.791 decided on 5-03-2007. dates ofhearing: 1st and 2-03-2006
IFTIKHAR MUHAMMAD CHAUDHRY, C.J., FAQIR MUHAMMAD KHOKHAR AND MIAN SHAKIRULLAH, JAN, JJ
Nemo for Appellant (in C.A. No. 791 of 2005). Raja Muhammad Akram, Senior Advocate Supreme Court for
Respondents (in CMA No. 2628 in C.A.No. 152 of 2005). Muhammad Akram Sheikh, Senior Advocate Supreme Court with M.A. Zaidi, Advocate-on-Record for Respond
COLLECTOR OF CUSTOMS, SALES TAX AND CENTRAL EXCISE and others--AppellantsVsMessrs SANGHAR SUGAR MILLS LTD. KARACHI and others ALAbbas Sugar Mills, Karachi(in C.A. No. 2688 of 2001)Mirpur Khas Sugar Mills, Mirpur Khas(in C.A. No. 2689 of 2001)
Law: Sales Tax Act, 1990
Section: 2(12),2(33),2(15)
Law: Constitution of Pakistan, 1973
Section: 185(3)
(Sales Tax Act (VII of 1990)].....S 2(12), (33) & (15)---Constitution of Pakistan (1973), Art. 185 (3)---Leave to appeal was granted by Supreme Court to consider; whether with reference to facts and circumstances of the matters, definitions of "goods", "supply" and "taxable activity" as provided under S.2(12), (33) and (35) of Sales Tax Act, 1990, was correctly interpreted and applied by High Court in the matter; whether fixed assets being movable property fell within the scope of "goods", as defined in Sales Tax Act, 1990 and were taxable; and whether disposal of fixed assets/goods through sale, lease or through any other means of disposition carried out for consideration was taxable supply and was covered by definition of "taxable activity". (b) Sales Tax Act (VII of 1990)-------S. 3(1)(a)---Words "in the course or furtherance of" occurring in S.13(1)(a), Sales Tax Act, 1990---Scope---Words "in the course or furtherance of" have prefixed words business or taxable activity---Meaning of "in the course of" can be taken to mean as connected with, related to and having some nexus with business/taxable activity and similarly "in furtherance of" is indicative of the fact that taxable supply has been made for enhancement/further development of business/taxable activity. (c) Words and phrases-------Furtherance---Meaning. Advanced Law Lexicon, Third Edn. 2005, p.1953 and Oxford English Dictionary, Vol. IV, p.619 rel.(d) Sales Tax Act (VII of 1990)-------Ss. 2(28), 2(41) [as amended by Finance Act (IX of 1996)] & 3(1)(a)---Term "taxable supply"---Meaning---Taxable supply has not been confined or limited to the one which is the product or the goods manufactured but also includes those goods which involve in some way with the progress, promotion, advancement of business activity / taxable activity.(e) Sales Tax Act (VII of 1990)-------S. 3(1)---Sales tax---Applicability---Sales tax would be applicable in respect of taxable supply made during the course of a business activity; it is immaterial whether supplier is in the business of relevant goods or not so involved but sale of such items and utilization of such sale consideration in business activity…