| Case ID |
1768d7a2-9e18-4015-a142-6c23b0c8e07b |
| Body |
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| Case Number |
Tax Reference No. 125 of 1971 and P.T.R. No. 209 o |
| Decision Date |
Dec 05, 1974 |
| Hearing Date |
Nov 05, 1974 |
| Decision |
The Lahore High Court ruled that the 'delinted cotton' and 'cotton waste' sold by the assessee constituted manufactured goods subject to sales tax under the Sales Tax Act, 1951. The court emphasized that the processes of ginning and delinting resulted in distinct products with different commercial values and uses, and thus, the assessee was liable for tax. The tribunal's decision was upheld, establishing that these products were not exempt from taxation as they did not qualify under the specified notifications. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act, 1951, particularly concerning the classification of goods and the application of sales tax to products derived from cotton processing. The Lahore High Court examined the processes involved in ginning and delinting cotton, determining that both delinted cotton and cotton waste are manufactured goods subject to sales tax. The court's decision is significant for understanding the taxable status of products in the textile industry, emphasizing the importance of the definitions provided in the Sales Tax Act. The ruling clarifies the criteria for what constitutes a manufactured good and how these definitions affect tax liabilities, making it a crucial reference for future cases involving similar issues. Keywords include 'Sales Tax Act', 'manufactured goods', 'cotton processing', 'tax liabilities', and 'Lahore High Court'. |
| Court |
Lahore High Court
|
| Entities Involved |
COMMISSIONER OF SALES TAX,
COLONY TEXTILE MILLS LTD
|
| Judges |
KARAM ELAHEE CHUHAN,
MUNAWAR ELAHEE RANA
|
| Lawyers |
Muhammad Amin Butt,
Sh. Abdul Haque
|
| Petitioners |
COLONY TEXTILE MILLS LTD
|
| Respondents |
COMMISSIONER OF SALES TAX, Lahore High Court ZONE
|
| Citations |
1975 SLD 96,
(1975) 32 TAX 282,
1976 PTD 128,
1976 PLD 243
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, (III of 1951),
Central Excise and Salt Act, (I of 1944)
|
| Sections |
2(6),
2(11),
2(12),
3,
4,
7,
6
|