| Case ID |
099dca95-ac3a-4ab3-ac25-9967a077ef24 |
| Body |
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| Case Number |
Special Sales Tax Appeal No. 255 of 2002 |
| Decision Date |
Feb 27, 2004 |
| Hearing Date |
Jan 22, 2004 |
| Decision |
The appeal was allowed as the provisions of sections 7 and 8(1)(b) of the Sales Tax Act, 1990 were found to prevail over S.R.O. 1307(I)/97. The court held that the input tax paid on electric panels and transformers used for producing taxable supplies was allowable, as these goods were not specified in the notification for exclusion. The learned Tribunal and the Additional Collector had misdirected in concluding that the appellant was not entitled to claim the deduction of input tax. The decision emphasized that subordinate legislation should not conflict with substantive provisions of the law. |
| Summary |
In the case of Ghandhara Nissan Diesel Ltd. vs. Collector, the Sindh High Court addressed the conflict between S.R.O. 1307(I)/97 and the provisions of the Sales Tax Act, 1990. The appellant, involved in assembling Nissan Diesel trucks, claimed input tax deductions for electric panels and transformers. The court ruled that the input tax was allowable under sections 7 and 8(1)(b) of the Sales Tax Act, as the specified goods were not excluded in any notification. This decision reinforces the principle that subordinate legislation cannot restrict substantive provisions of tax laws, ensuring that registered persons can reclaim input taxes paid for goods used in taxable activities. The case highlights the importance of clear legislative guidelines and the proper application of tax laws in Pakistan. |
| Court |
Sindh High Court
|
| Entities Involved |
Ghandhara Nissan Diesel Ltd.,
Collector, Large Tax Payers Unit, Government of Pakistan
|
| Judges |
Shabbir Ahmed, Justice,
Muhammad Mujeebullah Siddiqui, Justice
|
| Lawyers |
Aziz A. Shaikh,
Raja Muhammad Iqbal,
S. Mehmood Alam Rizvi
|
| Petitioners |
Ghandhara Nissan Diesel Ltd., through Sr. General Manager Finance, Karachi
|
| Respondents |
2 Others,
Collector, Large Tax Payers Unit, Government of Pakistan, Karachi
|
| Citations |
2006 SLD 286,
2006 PTCL 673,
(2006) 94 TAX 222,
2006 PTD 2066
|
| Other Citations |
Central Board of Revenue v. Sheikh Spinning Mills Limited, Lahore 1999 SCMR- 1442
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
7,
7(1),
8(1)(b),
33
|