2004 PLP 2214 (PTD)

(6) .Yet another factor which would weigh with the Court is that the Customs Department vide Notification S.R.O. 987, dated 30‑8‑1999 created further conditions for exemption of sales tax which were net stipulated in the earlier Notification i.e. S.R.O. 582(I)/98 which is under consideration before this Court. The issuance of this latter Notification further confirms that the Board of Revenue realized that language of the law had to be amended if it wanted to lay down more conditions. But any benefit to which the appellants were entitled during the currency of the earlier Notification cannot be denied to them."

3. Against which leave to appeal is being sought reiterating the department's stance.

4. Which we are afraid are ill‑founded because plain reading of para.(a) of the S.R.O. relevant text whereof for the sake of convenience of reference is reproduced herein below:‑‑ "EXEMPTION FROM SALES TAX ON PLANT AND MACHINERY Notification No. S.R.O. 582(I)/98, dated 12th June, 1998. In exercise of the powers conferred by clause (a) of subsection (2) of section 13 of the Sales Tax Act, 1990, read with item No.44 in the Sixth Schedule to the said Act and in supersession of Ministry of Finance and Economic Affairs Notification No. S.R.O. 230(I)/97; dated the 29th March, 1997, the Federal Government is pleased to notify the following plant and machinery, other than generators, generating sets, wires and cables, for the purpose of exemption of sales tax, namely:‑‑ (a) Plant and machinery, operated by power of any description, to be used for the manufacture of taxable goods by the registered person; patently demonstrates the intendment of the framers thereof adjudged on logical as well as literal rule of interpretation making no distinction qua the commercial and industrial manufacturer importer, envisaging three fold qualifying riders for availing the exemption viz the goods should be a plant and machinery (other than the set out exception); operatable by power of any description and to be used for manufacture of taxable goods by the registered persons, (who need not the importer thereof).

5. Further, the department seemingly being conscious of this construction, has deployed different language in the subsequent S.R.O. 987(I)/99, dated 30‑8‑1999 enshrining the following:‑‑ CERTAIN PLANT AND MACHINERY. Notification No. S.R.O. 987(I)/99, dated 30th August, 1999. In exercise of the powers conferred by subsection (1) of section 13 of the Sale Tax Act, 1990, read with serial No.44 in the Sixth Schedule to the said Act, the Federal Government is pleased to notify the following plant and machinery, excluding such imported plants and machinery as are manufactured locally and also excluding generators, generating sets, wires and cables and maintenance spares, for the purposes of exemption from sales tax, namely:‑‑ (a) Plant and machinery, operated by power of any description as are imported or purchased locally by a registered person to be used for the manufacture of taxable goods by that registered person." viz substituting the expression the by that i.e. restricting the exemption to the imported or locally purchased plant and machinery to be used by the manufacture of taxable goods by that registered person.

6. Consequently, the petitions being devoid of any substance, fail and are hereby dismissed. Leave declined. S.A.K./C‑83/S Leave refused.