| Case ID |
142e88dc-dc29-484e-923d-77e01baeb9a6 |
| Body |
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| Case Number |
Civil Petition No. 1817-L of 2017 |
| Decision Date |
Feb 04, 2021 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the petition by ruling that electricity meters are to be classified as equipment used in the operation of industrial processes, thereby eligible for zero rating under the Sales Tax Act. The court upheld the previous decision of the Lahore High Court, which had already established that electricity meters are not consumer durables but essential metering equipment vital for industrial operations. The court referenced standards from the International Electro Technical Commission and previous case law to support its decision, particularly the case of Sindh Institute of Urology Vs. Federation of Pakistan. Consequently, the court refused the leave to appeal, reinforcing the stance that electricity meters must be treated as equipment necessary for the functioning of industrial setups. |
| Summary |
The case involves the classification of electricity meters under the Sales Tax Act, 1990. The Supreme Court of Pakistan ruled that these meters are to be considered as equipment essential for industrial processes, thus qualifying for zero rating under the law. The decision was informed by international standards and prior judgments, emphasizing the importance of proper classification for taxation purposes. This ruling clarifies the legal interpretation of sales tax applicability on industrial equipment, which is crucial for businesses operating in the manufacturing sector. The case highlights the intersection of tax law and industrial operations, emphasizing the need for accurate classification of equipment to ensure compliance with tax regulations. The ruling supports the broader understanding of equipment used in industrial processes, which can include various metering devices crucial for operational efficiency. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
MR. JUSTICE SAJJAD ALI SHAH,
MR. JUSTICE UMAR ATA BANDIAL
|
| Lawyers |
Mr. Ibrar Ahmad, ASC (V.L. Lahore)
|
| Petitioners |
COMMISSIONER INLAND REVENUE ZONE1, LAHORE
|
| Respondents |
M/S. PAK ELEKTRON LTD. ETC.
|
| Citations |
2021 SLD 913,
2021 PTCL 801,
2022 PTD 747,
(2022) 126 TAX 260
|
| Other Citations |
2017 PTD 603,
2016 Civil Appeal No. 737
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
4
|