2005 PLP 742 (PTD)
Messrs HASHOO STEEL INDUSTRIES LTD. Versus GOVERNMENT OF PAKISTAN through Secretary, Ministry of Finance and Economic Affairs and 3 others
| Citation | 2005 PLP 742 (PTD) |
| Forum / Court | Karachi High Court |
| Bench Members | Sabihuddin Ahmed and Khilji Arif Hussain, JJ |
| Parties | Messrs HASHOO STEEL INDUSTRIES LTD. Versus GOVERNMENT OF PAKISTAN through Secretary, Ministry of Finance and Economic Affairs and 3 others |
| Primary Law | Sales Tax Act (VII of 1990)‑‑‑ |
Q1: What are the key laws and sections cited in 2005 PLP 742 (PTD)?
This judgment primarily cites: Sales Tax Act (VII of 1990)‑‑‑ as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2005 PLP 742 (PTD)?
The case was heard and decided by the Karachi High Court bench comprising: Sabihuddin Ahmed and Khilji Arif Hussain, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2005 PLP 742 (PTD) (Messrs HASHOO STEEL INDUSTRIES LTD. Versus GOVERNMENT OF PAKISTAN through Secretary, Ministry of Finance and Economic Affairs and 3 others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Mansoorul Arfin for Petitioner.
- Nadeem Azhar, D.A.‑G. for Respondent No. 1.
- Raja Muhammad Iqbal and Abdul Saeed Khan Ghori for Respondents Nos.2 to 4.
Headnotes / Summary
‑‑‑‑S.7‑‑‑Constitution of Pakistan (1973), Art 199‑‑‑Constitutional petition‑‑‑Petitioners had questioned the imposition of Sales Tax on "wire rods" manufactured by them at the rate of 12‑1/2 % ad valorem on the ground, of being discriminatory and arbitrary as other products of iron and steel falling in the same classification were liable to fixed Sales Tax @Rs.175 per metric ton‑‑‑Validity‑‑‑Held, the product manufactured by the petitioner was liable to Sales Tax @ 175 per metric ton, nevertheless the petitioner could only seek refund of the amount already paid upon proof of the fact that the burden of tax had not passed on to the consumer before the competent authority, such exercise was to be completed within three months. Al‑Abbas Steel (Pvt.) Ltd, v. Federation of Pakistan C. P No.13‑155 of 1993 ref.
Judgment & Decree
‑‑‑‑S.7‑‑‑Constitution of Pakistan (1973), Art 199‑‑‑Constitutional petition‑‑‑Petitioners had questioned the imposition of Sales Tax on "wire rods" manufactured by them at the rate of 12‑1/2 % ad valorem on the ground, of being discriminatory and arbitrary as other products of iron and steel falling in the same classification were liable to fixed Sales Tax @Rs.175 per metric ton‑‑‑Validity‑‑‑Held, the product manufactured by the petitioner was liable to Sales Tax @ 175 per metric ton, nevertheless the petitioner could only seek refund of the amount already paid upon proof of the fact that the burden of tax had not passed on to the consumer before the competent authority, such exercise was to be completed within three months. Al‑Abbas Steel (Pvt.) Ltd, v. Federation of Pakistan C. P No.13‑155 of 1993 ref. Mansoorul Arfin for Petitioner. Nadeem Azhar, D.A.‑G. for Respondent No.
1. Raja Muhammad Iqbal and Abdul Saeed Khan Ghori for Respondents Nos.2 to
4. The petitioners have questioned the imposition of sales tax on 'wire rods' manufactured by them at the rate of 12 1/2 % ad valorum on the ground of being discriminatory and arbitrary as other product of iron and steel fallen in the same classification are liable to fixed sales tax at Rs.175 per metric ton. The fee as to the rate of sales tax charges was not seriously contested in view of an unreported decision of a Division Bench of this Court in Al‑Abbas Steel (Pvt.) Ltd. v. Federation of Pakistan (C.P. No.D‑155 of 1993), dated 18‑3‑2003. However, relying upon the same judgment Raja Muhammad Iqbal, learned counsel for the respondents argued that the sales tax was an indirect tax and the petitioner could not claim refund unless it was proved that the burden of tax had not been passed on to the consumer. This admittedly is a question of fact, which could not appropriately be decided in these proceedings. For the foregoing reasons we would allow the petition to the extent to holding that the product manufactured by the petitioner is liable to sales tax at the rate of Rs.175 per metric ton. Nevertheless the petitioner could only seek refund of the amount already paid upon proof of the fact that the burden of tax had not passed on to the consumer before the competent authority. Let this exercise be completed within three months. The question of withdrawal of the amounts deposited in this Court may be considered upon a separate application being preferred. M.B.A./H‑31/K Order accordingly