1989 PLP 844 (PTD)

"Government of Pakistan Ministry of Finance and Economic Affairs. Islamabad, the 26th May, 1982. MOTIFICATION. (SALES TAX) S.R.O.510 (1)/82: -In exercise of the powers conferred by subsections (1) and (2) of Section 7 of the Sales Tax Act, 1951(III of 1951), the Federal Government is pleased to direct that the following further amendment shall be made in this Ministry's Notification No. S.R.O. 66(1)/81 dated the 25th June, 1981, namely: In the aforesaid Notification, in the table, for serial No.48 and the entry relating thereto in column (2) the following shall be substituted, namely:- "

48. Products of cotton powerloom factories equipped with not more than twenty powerlooms. Sd/ (Zafar Hussain) Additional Secretary. Entry No.48 of S.R.O. 666 (I)/81 dated 25th June, 1981, relied by the petitioner reads as follows:- "48 Products .of powerlooms units equipped with not more than twenty powerlooms." The petitioner has specifically alleged in para 3 of his petition that they are manufacturing wire gauze/netting (Jali) on the powerlooms which are installed in his factory and that the number of powerlooms installed in his factory is only

5. It is not disputed by the learned counsel for the respondents that under Item No.48 of S.R.O. No.666 (1)/81 dated 25th June, 1981 product of powerloom units having less than 20 powerlooms is exempted from payment of Sales Tax but it is contended that the Jali/Wire Gauze produced by the petitioner does not qualify for exemption as Item No.48 of the above Notification only covers the products of Textile Factory. We have already reproduced above. Item No.48 of S.R.O. No.666 (1) 181 and a reading thereof will make it clear that it extended' to all products of powerlooms units which are not equipped with more than 20 powerlooms. The exemption granted under Item No.48 of S.R.O. 666 (I) 181 is unqualified and is not restricted to products of Cotton or Textile Factories only as contended by the respondents. Our above conclusion is also supported by the issuance of Notification No.510 (1)/82 dated 26-5-1982 by Federal Government which amended item No.48 of S.R.O. 666 (1)/81 so that after amendment. Item No.48 is only applicable to products of cotton powerloom factories. We are accordingly of the view that until issuance of subsequent Notification No.51 (1) 182 by the Federal Government dated 26th May, 1982, under Section 7 of the Sales Tax Act, the `wire gauze' produced by the petitioner in their factory on powerlooms continued to enjoy exemption from payment of Sales Tax under S.R.O. No.666 (1)/81. We accordingly declare the order dated 9-4-1982 passed by respondent No.2 demanding Sales Tax from the Petitioner for the period from 24-4-1991 to 17-f-1981 as without lawful authority and of no legal effect. There will be no order as to costs. M.Y.H/A-557/K. Petition allowed.