Legal Case Summary

Case Details
Case ID 0c52dd1d-7dbd-4175-a40d-7a3bd13ef23a
Body View case body.
Case Number D-364 of 1982
Decision Date Feb 21, 1989
Hearing Date
Decision The Sindh High Court ruled in favor of the petitioner, Messrs AMIE INVESTMENT LTD., declaring that the order of the Deputy Collector II demanding sales tax was without lawful authority and of no legal effect. The court found that wire gauze produced by the petitioner was exempt from sales tax under Item No. 48 of S.R.O. 666 (1)/81 dated 25-6-1981, which applied to all products of powerloom units and was not limited to products from cotton and textile factories. The judgment emphasized that the exemption was unqualified and extended to the petitioner's production until a subsequent amendment limited the exemption to cotton powerloom factories only after the issuance of S.R.O. 510 (1)/82 on 26-5-1982. Therefore, the demand for sales tax was unjustified for the specified period.
Summary In the case of Sindh High Court's Constitutional Petition No. D-364 of 1982, the court addressed the issue of sales tax exemption for wire gauze produced by Messrs AMIE INVESTMENT LTD. under the Sales Tax Act (III of 1951). The petitioner challenged the legality of an order demanding sales tax on their products, arguing that the exemption under S.R.O. 666 (1)/81 applied broadly to all powerloom-produced items. The court's ruling highlighted the importance of understanding legislative exemptions in tax laws, particularly in the context of manufacturing and production units. The court concluded that the petitioner was unjustly subjected to sales tax demands and reaffirmed the broad applicability of the initial exemption. This case underscores the necessity for clarity in tax regulations and the need for manufacturers to be aware of their rights under existing laws. This ruling is significant for businesses involved in manufacturing and could serve as a precedent for similar cases, emphasizing the importance of adhering to the specific provisions of tax law and ensuring that businesses can operate without undue financial burdens.
Court Sindh High Court
Entities Involved
Judges SAEEDUZZAMAN SIDDIQUI, ABDUL RASOOL AGHA
Lawyers Riaz-ul-Hassan
Petitioners Messrs AMIE INVESTMENT LTD.
Respondents 2 others, PAKISTAN through its Secretary Ministry of Finance Planning and Development
Citations 1989 SLD 250, 1989 PTD 844
Other Citations Not available
Laws Involved Sales Tax Act
Sections 7