| Case ID |
036e7f9e-74e4-4830-a6b9-2c4b9998cb84 |
| Body |
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| Case Number |
Civil Petitions Nos.2837-L to 3220-L of 2003 and 1 |
| Decision Date |
Feb 11, 2004 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the decision of the Lahore High Court regarding the chargeability of sales tax on 'bagasse' as an intermediary product. The court ruled that the petitioners are liable to pay sales tax on 'bagasse' and emphasized that the additional tax is not recoverable. The court also directed the petitioners to approach the Sales Tax authorities for adjustments regarding output tax on 'molasses' and 'pressed mud'. The decision reaffirmed the principles of taxation as established in previous judgments and clarified the responsibilities of the sugar mills regarding sales tax payments. |
| Summary |
This case revolves around the issue of sales tax liability on 'bagasse', an intermediary product produced during sugar manufacturing. The Supreme Court of Pakistan addressed multiple petitions challenging the imposition of sales tax by the Collector of Customs, Sales Tax, and Central Excise. The court highlighted the legal framework governing sales tax under the Sales Tax Act of 1990 and clarified the applicability of sales tax on various by-products of sugar production. The ruling emphasized that 'bagasse' is taxable and set the precedent for how intermediary products are treated under tax law. This case is significant for sugar manufacturers and tax authorities, as it delineates the obligations regarding sales tax and provides guidance on the adjustment of input and output taxes for manufacturers. The decision is crucial for stakeholders in the sugar industry and is expected to influence future tax assessments and regulatory practices. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
IFTIKHAR MUHAMMAD CHAUDHRY,
JUSTICE KHALIL-UR-REHMAN RAMDAY,
FALAK SHER, JUSTICE
|
| Lawyers |
Not available
|
| Petitioners |
Chanar Sugar Mills Ltd.,
Phalia Sugar Mills Ltd.,
Brother Sugar Mills Ltd.,
Haseeb Waqas Sugar Mills Ltd.,
Chinnar Sugar Mills Ltd.,
Abdullah Sugar Mills Ltd.,
Chishtian Sugar Mills Ltd.,
Kamalia Sugar Mills Ltd.,
Pattoki Sugar Mills Ltd.,
JDW Sugar Mills Ltd.,
Tandlianwala Sugar Mills Ltd.,
Baba Farid Sugar Mills Ltd.,
Fecto Sugar Mills Ltd.,
Ratrizan Sugar Mills Ltd.,
Crescent Sugar Mills Ltd.
|
| Respondents |
Collector Customs, Sales Tax and Central Excise, Faisalabad
|
| Citations |
2004 SLD 451,
2004 PTD 2741
|
| Other Citations |
2001 SCMR 1376
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
2(46),
2(46)(a)(i),
2(46)(c),
3,
7(1),
7(2),
8(2),
13(1),
33,
34,
36
|