| Case ID |
12d09c73-e621-498a-86ae-a7324501ae20 |
| Body |
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| Case Number |
Civil Petition for Special Leave to Appeal Nos. 21 |
| Decision Date |
Oct 12, 1973 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the petitions concerning the imposition of sales tax on metallic chains and bracelets manufactured by the petitioner-company for being worn with watches. The Court upheld the findings of the Sales Tax Authorities, which stated that the articles in question were not commonly or commercially known as ornaments and jewellery, and thus did not qualify for exemption under item 16 of the relevant Notification. The petitioner’s alternative claim for exemption under item 15 was also rejected, as it was not raised before the statutory authorities, and the Court noted that it would require further factual investigation. The decision emphasized the strict interpretation of exemption clauses in tax law, confirming that the articles did not meet the criteria for exemptions established in the Sales Tax Act. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act, particularly regarding exemptions for goods classified as ornaments and jewellery. The petitioner, Rehmat-Ullah & Sons, sought exemption from sales tax for metallic chains and bracelets intended for use with watches. The Supreme Court reinforced that exemptions in tax law should be strictly construed, ruling that the items did not fall within the defined categories of jewellery as per the relevant notifications. The decision highlighted the importance of factual findings from lower courts and the necessity of raising all claims at the appropriate statutory levels. Legal practitioners should note the implications of this ruling for future cases involving sales tax exemptions and the definitions of goods under tax law. This case serves as a critical reference point for understanding the boundaries of tax exemptions in Pakistan, particularly in relation to the manufacturing of decorative items. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD YAQUB ALI,
ANWARUL HAQ
|
| Lawyers |
Hafeezur Rahman, Advocate,
Ejaz Ahmad Khan, Advocate-on-Record,
Abdul Haq, Senior Advocate,
Iftikhar-ud-Din Ahmad Khan, Advocate-on-Record
|
| Petitioners |
REHMAT-ULLAH & SONS
|
| Respondents |
COMMISSIONER OF SALES TAX
|
| Citations |
1974 SLD 54 = (1974) 29 TAX 193
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act
|
| Sections |
7(1),
17,
3(1)(a)
|