Law: Sales Tax Act, 1990

Section: 3,3(2),6,8(2)

Law: Constitution of Pakistan, 1973

Section: 199

Law: Central Excise Rules, 1944

Section: 7,9,52A,54,55,220,236,241,244,246

Sales Tax Act (VII of 1990)---Ss. 3(2), 6 & 8(2)---Central Excise Rules, 1944, Rr. 7, 9, 52-A, 54, 55, 220, 236, 241, 244 & 246---Constitution of Pakistan (1973), Art.199---Constitutional petition---Import of Diazo Base Paper for manufacturing sensitized papers required for preparation of blue prints/sketches---Use of waste of Diazo Base paper for wrapping/ packing end product i.e. rolls of sensitized papers---Demand of sales tax and excise duty on such paper wastage as packing material---Validity---Wrapping papers were neither manufactured distinguishably nor produced in style and shape that they could be used independently, but could only be used as wrapping paper for end product---Such waste paper could not be considered a new inter-mediatory item---Wrapping paper had already undergone levy of sales tax and excise duty on its value and weightage, thus, tax credit availed on such wastage could not be disallowed by department---High Court quashed impugned show-cause notice in circumstances. Collector of Central Excise and Sales Tax (Central), Karachi and another v. Hilal Steel Industries (Pvt.) Ltd. 2001 PTD 3945 ref. Madina Ghee Mills (Pvt.) Ltd. v. Collector of Customs, S.T. & C.E. (Adjudication), Faisalabad, 2002 YLR 2999 and Sheikhoo Sugar Mills Ltd., and others v. Government of Pakistan and others 2001 SCMR 1376 rel. JUDGMENT MUHAMMAD ATHER SAEED, J.--- This constitutional petition was filed impugning the order passed by the Central Board of Revenue in Revision No. 2(297)STR/93 dated 10-1-1994 whereby the observation made in the order-in-original that tax credit is admissible only on the quantity of raw material which is used in the manufacture of taxable supplies, was held correct and thus the Order-in-Original and the order in appeal passed by the relevant forums were upheld. 2. The petition was heard by a Division Bench of this Court and was disposed of vide judgment of the Division Bench dated 19-4-2003 wherein this Court had allowed the petition and quashed the show-cause notice and all the subsequent orders passed in pursuance thereof holding it to be without lawful jurisdiction. This decision was taken by the learned Division Bench for…

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