| Case ID |
15a281b8-3fc5-4a45-b6c3-f6b13d806e21 |
| Body |
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| Case Number |
D-3266 of 2014 |
| Decision Date |
Oct 20, 2015 |
| Hearing Date |
Oct 06, 2015 |
| Decision |
The court dismissed the constitutional petition challenging the validity of section 3(8) of the Sales Tax Act, 1990, which mandates the charging of sales tax from CNG stations at the time of purchasing natural gas. The petitioners argued that this mechanism effectively increased the sales tax burden from 17% to 32%, contrary to established provisions. The court found that the sales tax was properly charged at a single stage, ensuring that the ultimate burden remained with the consumer, thereby upholding the legality of the tax mechanism as compliant with the provisions of the Sales Tax Act. |
| Summary |
The Sindh High Court's ruling in the case of Faisal Arab, C.J. and Muhammad Iqbal Kalhoro, J. against the Federation of Pakistan addresses critical aspects of the Sales Tax Act, 1990. The primary contention revolved around section 3(8), which allows for the collection of sales tax at the point of purchase of natural gas by CNG stations rather than at the point of sale to consumers. The petitioners argued that this method unfairly raised the effective tax rate. However, the court clarified that the tax, charged at 17%, did not impose any undue burden on the operators since the cost was ultimately passed on to consumers. The ruling reinforces the importance of tax compliance within the framework of the Sales Tax Act and highlights the court's role in interpreting legislative intent while balancing taxpayer concerns. Keywords such as 'Sales Tax Act', 'CNG stations', and 'Sindh High Court' are essential for SEO optimization, targeting legal professionals and stakeholders in the taxation domain. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
FAISAL ARAB, C.J.,
MUHAMMAD IQBAL KALHORO, J.
|
| Lawyers |
Khalid Jawed Khan,
M. Ahmar,
Syed Irshadur Rehman,
Fahim Zia Abrar,
Raja Fateh Shaikh,
Munawar Ali,
Amjad Ali,
Sarfraz Ali Metlo,
Barkat Ali,
Amjad Javed Hashmi,
Kafeel Ahmed Abbasi,
Farmanullah Khan,
Asim Iqbal
|
| Petitioners |
5 OTHERS,
SHAKEEL AHMED
|
| Respondents |
FEDERATION OF PAKISTAN,
2 others,
Secretary, Revenue Division
|
| Citations |
2016 SLD 295,
2016 PTD 577
|
| Other Citations |
2014 SCMR 220,
PLD 1997 SC 582
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3(2)(a),
3,
7
|