| Case ID |
0886f51f-d406-4d63-af20-43cfbed4af63 |
| Body |
View case body. Login to View |
| Case Number |
Civil Petition No.707-K of 2000 |
| Decision Date |
Aug 08, 2001 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the petition, concluding that the process of slitting M.S. sheets/strips/coils does not constitute manufacturing under the relevant laws. The court emphasized that the slitting process does not change the original character of the goods, and therefore, the respondents were not liable for sales tax. The Court referred to previous case law that defined 'manufacture' and maintained that mere cutting does not equate to producing a new product. Consequently, the leave to appeal was refused, affirming the decision of the High Court. |
| Summary |
This case revolves around the interpretation of manufacturing under the Sales Tax Act, 1990, and the Central Excise Act, 1944. The Supreme Court of Pakistan evaluated whether the slitting of M.S. sheets into strips constituted manufacturing, thereby attracting sales tax. The court found that the slitting merely maintains the original character of the goods and does not transform them into a new product, which is essential for tax liability. The ruling clarifies the boundaries of manufacturing processes and the tax implications therein, providing significant insights into sales tax law and its application. This case is crucial for businesses engaged in similar activities, ensuring clarity on what constitutes manufacturing for tax purposes. The decision is a landmark judgment that will influence future cases regarding manufacturing and taxation. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Central Excise and Sales Tax, Karachi,
Hilal Steel Industries (PVT.) LTD
|
| Judges |
Nazim Hussain Siddiqui,
Mian Muhammad Ajmal
|
| Lawyers |
Abdul Saeed Khan Ghori
|
| Petitioners |
Collector of Central Excise & Sales Tax (Central), Karachi
|
| Respondents |
Messrs Hilal Steel Industries (PVT.) LTD
|
| Citations |
2001 SLD 748,
2001 PTD 3945,
(2002) 85 TAX 150
|
| Other Citations |
PLD 1991 SC 992
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973,
Central Excise Act, (I of 1944)
|
| Sections |
3,
185(3),
2(f)
|