2022 PLP 757 (SCMR)
COMMISSIONER INLAND REVENUE, ZONE-I, LAHORE — Petitioner Versus Messrs PAK ELEKTRON LTD. and others — Respondents
| Citation | 2022 PLP 757 (SCMR) |
| Forum / Court | Supreme Court of Pakistan |
| Bench Members | Umar Ata Bandial, Sajjad Ali Shah and Munib Akhtar, JJ |
| Parties | COMMISSIONER INLAND REVENUE, ZONE-I, LAHORE — Petitioner Versus Messrs PAK ELEKTRON LTD. and others — Respondents |
| Primary Law | Sales Tax Act (VII of 1990) |
Q1: What are the key laws and sections cited in 2022 PLP 757 (SCMR)?
This judgment primarily cites: Sales Tax Act (VII of 1990) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2022 PLP 757 (SCMR)?
The case was heard and decided by the Supreme Court of Pakistan bench comprising: Umar Ata Bandial, Sajjad Ali Shah and Munib Akhtar, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2022 PLP 757 (SCMR) (COMMISSIONER INLAND REVENUE, ZONE-I, LAHORE — Petitioner Versus Messrs PAK ELEKTRON LTD. and others — Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Ibrar Ahmad, Advocate Supreme Court (V.L. Lahore) for Petitioner.
- Nemo for Respondents.
Headnotes / Summary
(Against the judgment dated 24.04.2017 of the Lahore High Court, Lahore passed in STR No. 1 of 2011)
S. 4
Electricity meters
Equipment eligible for zero rating of sales tax under SRO No. 530(I)/2005 dated 6-6-2005 ('the SRO')
Plea by tax department that electricity meters are consumer durables and are not eligible for classification as equipment and hence not covered by the SRO
Held, that metering equipment can be used for different purposes
In relation to machinery, equipment that measures temperature, speed, pressure etc. are also in the nature of metering equipments
Undeniably power supply is a crucial factor for the operation of plant and machinery, therefore, electricity meters are classifiable as equipment used in the operation of the industrial process at the taxpayer's premises
High Court and the Tribunal had rightly found that electricity meters are equipment eligible for zero rating under the terms of SRO No. 530(I)/2005 dated 6-6-2005
Petition for leave to appeal was dismissed and leave was refused. Sindh Institute of Urology v. Federation of Pakistan 2017 PTD 603 ref.
Judgment & Decree
UMAR ATA BANDIAL, J.
The learned High Court by Judgment dated 24.04.2017 upheld the view taken by the learned Tribunal dated 13.08.2010 to hold that the electricity meters are equipment eligible for zero rating under the terms of SRO 530(I)/2005 dated 06.06.2005. The arguments advanced by the learned counsel for the Commissioner Inland Revenue is that electricity meters are consumer durables and are not eligible for classification as equipment. The learned Appellate Tribunal has quoted that 'the International Electro Technical Commission Switzerland's publications such as International Standards IEC 62052-II, IEC 62053-II, and IEC 62053-23 which categorically described 'electricity meters' as electricity metering equipment'. To our minds metering equipment can be for different purposes. In relation to machinery, equipment that measures temperature, speed, pressure etc. are also in the nature of metering equipments. Undeniably power supply is a crucial factor for the operation of plant and machinery. Therefore, electricity meters are classifiable as equipment used in the operation of the industrial process at the tax payer's premises. Reference is made to the case of Sindh Institute of Urology v. Federation of Pakistan (2017, PTD 603) which goes against the interpretation urged by the petitioner. The view taken in the said judgment has been upheld by this Court in its judgment dated 11.02.2020 passed in Civil Appeal No. 737 of 2016 titled Federation of Pakistan and others v. Sindh Institute of Urology and Transplant and others. In view of the foregoing, this petition is dismissed and leave to appeal is refused. MWA/C-3/SC Petition dismissed.