| Case ID |
0ae206a6-e401-489e-9c55-6f3567374866 |
| Body |
View case body. Login to View |
| Case Number |
Suit No. 92, 47 & 276 of 2014 |
| Decision Date |
Apr 16, 2020 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled that the beverage industry does not qualify as an agro-based industry for the purposes of exemption under SRO 575. The plaintiffs, M/S. Haidri Beverages, argued that their industry utilized sugar as a major input and thus should be classified as agro-based. However, the court found that mere use of sugar does not constitute an agro-based industry. The court emphasized that the legislative intent was to promote industries directly dependent on agriculture, and since the beverage industry lacks such a direct connection, the claim for exemption was denied. The court also noted that past departmental practices and certifications from the Ministry of Food could not override the statutory requirements. The plaintiffs were not entitled to the exemptions claimed under the Customs Act and the Sales Tax Act. |
| Summary |
In a landmark decision by the Sindh High Court, the court addressed the classification of the beverage industry in relation to agro-based exemptions under the Customs Act and the Sales Tax Act. The case involved plaintiffs M/S. Haidri Beverages and M/S. Riaz Brothers, who sought exemptions based on their claim that their industry utilized sugar, a product of agriculture, as a primary input. However, the court determined that the beverage industry does not meet the criteria for agro-based classification as defined by relevant laws. The court highlighted that the mere inclusion of sugar in production does not establish a direct nexus with agricultural practices. This ruling underscores the importance of legislative intent in tax exemption cases and clarifies the boundaries of what constitutes an agro-based industry. The case serves as a critical reference for future disputes in tax exemption claims, particularly for industries relying on agricultural products. The decision is significant for stakeholders in the beverage sector, as it sets a precedent for the interpretation of agro-based industry classifications under Pakistani tax law. |
| Court |
Sindh High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
M/S. HAIDRI BEVERAGES, (PVT.) LIMITED,
M/S. RIAZ BROTHERS (PVT.) LIMITED
|
| Judges |
MR. JUSTICE MUHAMMAD JUNAID GHAJFAR
|
| Lawyers |
Mr. Malik Ahsan Mehmood,
Mr. Akhlar Ali Memon,
Mr. Amin M. Bandukda,
Mr. Saeed Ahmed Awan,
Mr. Ishrat Zahid Alvi,
Mr. Kashif Nazeer,
Irfan Ali
|
| Petitioners |
M/S. HAIDRI BEVERAGES, (PVT.) LIMITED AND OTHERS,
M/S. RIAZ BROTHERS (PVT.) LIMITED
|
| Respondents |
FEDERATION OF PAKISTAN & OTHERS,
FEDERATION OF PAKISTAN & ANOTHER
|
| Citations |
2020 SLD 1443,
2020 PTCL 553,
2021 PTD 362
|
| Other Citations |
Not available
|
| Laws Involved |
Civil Procedure Code (V of 1908),
Sales Tax Act, 1990,
Customs Act, 1969
|
| Sections |
9,
13,
19
|