1985 PLP 1959 (SCMR)
Messrs A AND B FOOD INDUSTRIES LTD. and others — Petitioners Versus COMMISSIONER OF INCOME-TAX/SALES TAX Respondent
| Citation | 1985 PLP 1959 (SCMR) |
| Forum / Court | High Court |
| Bench Members | Abdul Kadir Shaikh, S.A. Nusrat and Zaffar Hussain Mirza, JJ |
| Parties | Messrs A AND B FOOD INDUSTRIES LTD. and others — Petitioners Versus COMMISSIONER OF INCOME-TAX/SALES TAX Respondent |
| Primary Law | Constitution of Pakistan (1973) |
Q1: What are the key laws and sections cited in 1985 PLP 1959 (SCMR)?
This judgment primarily cites: Constitution of Pakistan (1973) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1985 PLP 1959 (SCMR)?
The case was heard and decided by the High Court bench comprising: Abdul Kadir Shaikh, S.A. Nusrat and Zaffar Hussain Mirza, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1985 PLP 1959 (SCMR) (Messrs A AND B FOOD INDUSTRIES LTD. and others — Petitioners Versus COMMISSIONER OF INCOME-TAX/SALES TAX Respondent). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Iqbal Naim Pasha, Advocate Supreme Court with Nizam Ahmed, Advocate-on-Record for Petitioners.
- Muzaffar Hassan, Advocate-on-Record for Respondent.
- Date of hearing: 24th June, 1985.
- Iqbal Naim Pasha, Advocate Supreme Court with Nizam Ahmed, Advocate‑on‑Record for Petitioners.
- Muzaffar Hassan, Advocate‑on‑Record for Respondent.
Headnotes / Summary
Art. 185(3)--Sales Tax Act (III of 1951). S. 27--Central Excises -and Salt Act (I - of 1944)--Refund of tax claimed on ground that vegetable ghee consumed in manufacturing of biscuits was subject to sales tax through imposition of capacity duty levied under Act (I of 1944)--Refund refused on plea that since levy of sales tax on vegetable ghee was abolished and not paid, question of refund did not arise--Leave granted to consider whether sales tax payable on vegetable ghee which was merged with excise duty and levied under a consolidated item, that is, capacity duty, was refundable to petitioner when consumed by him in manufacture of biscuits when levy of sales tax on vegetable ghee was abolished by a notification.
Judgment & Decree
ABDUL KADIR SHAIKH, J.‑‑The petitioner, a private limited company, is a manufacturer of biscuits, and in manufacturing the same, it consumes vegetable ghee. In the sales tax assessment for the assessments years 1968‑1969, 1969‑1970 and 1970‑71, petitioner claimed refund of sales tax in respect of vegetable ghee consumed in the manufacture of biscuits on the ground that vegetable ghee so consumed was subject to sales tax through the imposition of capacity duty levied under the Central Excises and Salt Act, 1944 was subsequently exempted under a notification, dated 16‑6‑1967. The Sales Tax Officer refused. Petitioner s claim by the order dated 17‑6‑1972 on the ground that since by virtue of the said notification the levy of sales tax on vegetable ghee was abolished and was not paid, the question of refund of the sales tax in respect of vegetable ghee used in the manufacture of biscuits did not arise. Aggrieved by these orders, petitioner filed three separate appeals for the assessment years concerned. The appeals were allowed by the Income‑Tax Appellate Tribunal by a consolidated order dated 27‑2‑1963. The Department being aggrieved by the judgment of the Tribunal filed an application under section 17(1) of the Sales Tax Act 1951 in the Sind High Court referring the following question for decision: "Whether on the facts and in the circumstances, the Tribunal was justified in directing the Sales Tax Officer to allow refund of sales tax on the amount of vegetable Ghee consumed when vegetable Ghee had suffered no sales tax at all." The learned Judges of the Division Bench of the High Court who heard the case answered the question in the negative by the judgment dated 28‑4‑1984. It is in these circumstances that the petitioners now seek leave to appeal from the judgment of the High Court. Mr. Iqbal Naim Pasha, learned counsel appearing in support of these three petitions, submits that since the sales tax payable on vegetable Ghee was merged with excise duty and levied under a consolidate item, that is, capacity duty, the petitioner is entitled to refund of the sales tax on the consumption of vegetable Ghee in the manufacture of biscuits after the levy of sales tax was exempted. This amongst others, is an important question of law which is likely to arise in large number of cases. It is, therefore, necessary that an authoritative decision of this Court be rendered. Leave to appeal is granted. Security Rs.2,500, in each case. Appeals will be heard on the present record. It is, however, open to the parties to file additional documents, if any. This is not a fit case for grant of interim relief prayed for. Miscellaneous petitions filed in this behalf are dismissed. M. I. Leave granted.