| Case ID |
08dffe65-c137-4707-87b1-fc2dbbf89a27 |
| Body |
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| Case Number |
D-556 of 1984 |
| Decision Date |
Oct 07, 1985 |
| Hearing Date |
Oct 01, 1985 |
| Decision |
The petition was dismissed with no order as to costs. The court held that under the Central Excise and Salt Act, the excise duty is to be levied based on the date of manufacture of goods. The petitioner had cleared battery cells after the exemption notification but was still liable for excise duty based on the Supreme Court's binding decision. The court emphasized that the law laid down by the Supreme Court in previous judgments was applicable and that the duty is essentially a charge on production. The petitioner was not entitled to the exemption claimed for the goods cleared after the exemption took effect. |
| Summary |
The case revolves around the interpretation of the Central Excise and Salt Act, particularly concerning the levy of excise duty on goods that were manufactured and cleared after a notification of exemption was issued. The Sindh High Court, presided over by Justices Abdul Qadeer Chaudhry and Mamoon Kazi, found that the law established by the Supreme Court regarding the timing of excise duty liability is binding on lower courts. The petitioner, Pakistan Battery Manufacturing Co. Ltd., argued against a claim for excise duty on battery cells cleared after the exemption notification. However, the court upheld that the duty must be levied at the time of manufacture, and the prior Supreme Court rulings were applicable. This case highlights the complexities of tax law and the importance of adhering to established legal precedents in tax matters, which is crucial for manufacturers and businesses navigating excise duties. |
| Court |
Sindh High Court
|
| Entities Involved |
Pakistan Battery Manufacturing Co. Ltd.,
Collectorate of Central Excise and Land Customs
|
| Judges |
ABDUL QADEER CHAUDHRY,
MAMOON KAZI
|
| Lawyers |
Khurshid Anwar Shaikh,
Wajih-ud-Din Ahmed
|
| Petitioners |
PAKISTAN BATTERY MANUFACTURING CO. Ltd.
|
| Respondents |
3 others,
THE DEPUTY DIRECTOR, COLLECTORATE OF CENTRAL EXCISE and LAND CUSTOMS
|
| Citations |
1986 SLD 1184,
1986 MLD 107
|
| Other Citations |
C.P.S.L.A. No.468 of 1980; Central Board of Revenue etc. v. Colony Thal Textile Mills Ltd. 1981 S C M R 303,
Colony Sarhad Textile Mills Ltd., Nowshera v. Superintendent, Central Excise and Land Customs 1979 S C M R 640,
P L D 1978 Lah. 475
|
| Laws Involved |
Central Excise and Salt Act, (I of 1944),
Central Excise Rules, 1944
|
| Sections |
3,
12A(1),
9,
9A
|