2004 PLP (Trib (PTD)
N/A
| Citation | 2004 PLP (Trib (PTD) |
| Forum / Court | Customs, Central Excise and Sales Tax Appellate Tribunal |
| Bench Members | Yasmeen Abbasey, Member (Judicial) and Zafar Iqbal, Member (Technical) |
| Parties | N/A |
| Primary Law | Sales Tax Act (VII of 1990)‑‑‑ |
Q1: What are the key laws and sections cited in 2004 PLP (Trib (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 2004 PLP (Trib (PTD)?
The case was heard and decided by the Customs, Central Excise and Sales Tax Appellate Tribunal bench comprising: Yasmeen Abbasey, Member (Judicial) and Zafar Iqbal, Member (Technical).
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2004 PLP (Trib (PTD) (N/A). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- A.S. Jaffery for Appellant.
- Ali Gohar Jaffery and Iftikhar Hussain Inspectors for Respondent.
- Date of hearing: 13th April, 2004.
Headnotes / Summary
‑‑‑‑S.13, Sixth Sched., Entry No.4‑‑‑Exemption‑‑‑Clover seeds‑‑ Demand of sales tax on local supply of imported clover seeds which was exempt from sales tax‑‑‑Validity‑‑‑Goods enjoying exemption under S.13(1) of the Sales Tax Act, 1990 go out of the purview of Sales Tax Act, 1990, and the supply of such goods at all the stages of the market mechanism did not fall within the purview of taxable supply being the supply of goods which were exempt from payment of sales tax under S.13 of the Sales Tax Act, 1990 and consequently such goods go out of the scope of S.3(1) of the Sales Tax Act, 1990‑‑‑Demand of sales tax from the appellant in respect of goods which were out of the scope of sales tax provisions was not justified‑‑‑Order had not been passed in accordance with law and the same was set aside by the Appellate Tribunal. Army Welfare Sugar Mills v. Federation of Pakistan 1992 SCMR 1652 and Messrs Premier Distributors v. Federation of Pakistan 2002 PTD 654 rel.
Judgment & Decree
YASMEEN ABBASEY, MEMBER (JUDICIAL).
‑‑‑This appeal challenges the vires of the order, dated 2‑9‑2000 passed by the Additional Collector of Customs, Sales Tax and Central Excise Adjudication, Hyderabad, whereby he enforced a demand of tax in respect of the exempted goods.
2. According to the facts available on record, the appellant imported clover seeds. The said item was exempt in terms of the then Entry No.4 of the Sixth Schedule to the Sales Tax Act, 1990. The entry provides that the importation of seeds of fruits and spores for sowing will remain exempt from payment of sales tax in terms of section 13 of the Sales Tax Act, 1990. The audit officer of the respondent raised a demand of tax on its local supply and the respondent enforced the same vide the impugned order. Hence the present appeal.
3. The learned counsel for the appellant states that since his goods stood exempt vide Entry No.4 of the Sixth Schedule to the Sales Tax Act, 1990 hence there was no question of demand of tax.
4. The departmental representative, however, supported the impugned order for the reasons given therein.
5. We have heard the rival parties at length. The sole issue for decision is whether or not the tax was chargeable on the supplies made by the appellant. This issue has already been a moot point before the Superior Courts and in particularly in the case of Army Welfare Sugar Mills v. Federation of Pakistan 1992 SCMR 1652 and Messrs Premier Distributors v. Federation of Pakistan 2002 PTD
654. Their lordships held that the goods enjoying exemption under section 13(1) of the Sales Tax Act, 1990 go out of the purview of the Sales Tax Act and the supply of such goods at all the stages of the market mechanism do not fail within the purview of taxable supply being the supply of goods which are exempt from payment of sales tax under section 13 and consequently such goods go out of the scope of section 3(1) of the Sales Tax Act, 1990. Thus the demand of sales tax from the appellant in respect of goods which were out of the scope of sales tax provisions was not justified.
6. For the foregoing reasons we find that the impugned order has not been passed in accordance with law and the same is accordingly set aside. C.M.A./125/Tax (Trib.) Appeal accepted.