2006SCMR48 (PLP)

MUNIR A. SHEIKH, J.

This petition for leave to appeal is directed against the judgment, dated 16-12-1998 of the Lahore High Court, Lahore through which Writ Petition No.5958 of 1998 filed by the respondents was partly accepted for the reasons recorded in the judgment passed in Writ Petition No.9272 of 1998 decided on 2-10-1998.

2. The respondents challenged the legality of notification dated 20-12-1997 issued under subsection (1) of section 8 of Sales Tax Act, 1990 according to which the said respondents were held not entitled to reclaim or deduct output tax on the goods which were not the direct constituent and integral part of taxable goods produced by the respondents, manufactured or supplied. Reliance was placed on an earlier notification, dated 1-7-1996 and the learned Single Judge while comparing both the notifications in juxta-position held that the second notification dated 20-12-1997 is valid only to the extent of the goods specified in the first notification, dated 1-7-1996 as a consequence of which the respondents became entitled to reclaim the said deduction.

3. Learned counsel for the petitioner submitted that in exactly similar other cases, the same notification was brought under challenge through Civil Petitions Nos. 1986/L, 1987/L, 1995/L, 1996/L, 2012/L, 2013/L, 2016/L, 2019/L and 2020/L of 1998. This Court after examining the relevant provisions of law and the notification in paragraph 7 of the judgment passed in the said petitions on 24-12-1998, came to the following conclusions:-- "(7) In our view the learned Judge in Chambers was not justified in granting a general declaration in respect of the above notification dated 20-12-1997 in the absence of any specific instance of denial by the Department to the respondents to reclaim or deduct the input tax paid on goods which are not the direct constituent and integral part of the taxable goods produced, manufactured or supplied. It would have been appropriate to have asked the respondents to approach the forum provided under the Act by providing guidelines. We have, therefore, converted the above petitions into appeals and disposed of the same in terms of the short order of even date quoted above."

4. In the present case also, the respondents appear to have directly approached the High Court without there being specific denial on the part of the Department of the claim to deduct the input tax, etc., therefore, in the first instance they have to approach the forums provided under the Act for the purposes before invoking the, constitutional jurisdiction.

5. The present case being identical case, therefore, this petition after hearing learned counsel for the parties is hereby converted into appeal and decided in terms of judgment, dated 24-12-1998 passed in the said civil petitions paragraph 7 of which has been reproduced above. There will be, however, no order as to costs. H.B.T./C-47/L Order accordingly.