Law: Sales Tax Act, 1990

Section: 3,2(12),2(33),3(1)(a)

(a) Sales Tax Act (VII of 1990)--- ----S. 3---Scope of tax---Sales tax cannot be levied on the packing charges being a part of the price covered by the manufacturer/assessee on the packaged goods. (b) Sales Tax Act (VII of 1990)---Ss. 3 & 2(12)--Scope of tax---`Scrap' is chargeable under Sales Tax Act, 1990 being waste of the manufacturing process and having nexus with the main business---Scrap is a "goods" and is acquired in furtherance of business being a product retrieved on use of the same raw material on which input tax has been paid---[Collector, Customs, Central Excise and Sales Tax, Karachi (West) v. Novartis Pakistan Ltd. 2002 PTD 976; "Messrs Habib Sugar Mils Ltd. through Law Officer v. Additional Collector, Sales Tax, Customs House, Site Hyderabad and 2 others 2007 PTD 171 dissented from]. Collector of Customs, Sales Tax and Central Excise and others v. Messrs Sanghar Sugar Mills Ltd. Karachi and others 2007 PTD 1902 fol. Collector, Customs, Central Excise and Sales Tax, Karachi (West) v. Novartis Pakistan Ltd. 2002 PTD 976; "Messrs Habib Sugar Mils Ltd. through Law Officer v. Additional Collector, Sales Tax, Customs House, Site Hyderabad and 2 others 2007 PTD 171 dissented from. (c) Sales Tax Act (VII of 1990)--- ----Ss. 2(33) & 3---`Supply'--Definition of wide import---Term "supply" includes sale, lease or other "disposition of goods in furtherance of business---If any of the ingredients mentioned in definition of supply are missing, it will not become a "supply" and for that matter a "taxable supply"---Principles. Collector Customs, Central Excise and Sales Tax, Karachi (West) v. Novartis Pakistan Ltd. 2002 PTD 976 and State of Gujrat v. Raipur Manufacturing Co. Ltd. AIR 1967 SC 1066 ref. (d) Sales Tax Act (VII of 1990)--- ----S. 3(1)(a)---Transportation and handling---Chargeability to sales tax--Scope---Term "in furtherance of business" occurring in S.3(1)(a) Sales Tax Act, 1990---Connotation---Anything which is directly connected with products being supplied by the assessee as well as by-products and then sold would be "in furtherance of business"---Transportation and handling being not in "furtherance of business", sales tax was not chargeable…

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