| Case ID |
1b129496-4420-4341-9467-f0bf922e1827 |
| Body |
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| Case Number |
C.A. No. 323 of 2004 |
| Decision Date |
Feb 09, 2007 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeal filed by Hashwani Hotels Limited, which sought exemption from payment of sales tax and concessional customs duty on a motorboat imported for tourism purposes. The court upheld the decision of the Sindh High Court, which had ruled that the appellant failed to meet the necessary conditions for exemption outlined in the relevant notifications. The court emphasized that the burden of proof was on the appellant to establish that the motorboat could not be manufactured locally, which they failed to do. Consequently, the appellant was deemed liable to pay the applicable sales tax and customs duty as per the amended notification. |
| Summary |
In the case of Hashwani Hotels Limited v. Government of Pakistan, the Supreme Court of Pakistan addressed the issue of sales tax exemption on an imported motorboat intended for tourism. The court analyzed the provisions of the Sales Tax Act and the Customs Act, emphasizing that exemptions must be strictly interpreted against the taxpayer. The appellant, Hashwani Hotels, argued that they were entitled to exemption based on the non-manufacturability of the motorboat locally. However, the court found that the appellant did not provide sufficient evidence to support their claim. The Customs Department had reassessed the value of the motorboat, leading to increased duty and tax obligations. The Supreme Court ultimately dismissed the appeal, affirming the High Court's decision, which highlighted the necessity for compliance with all conditions set forth in the exemption notification. This case underscores the importance of adhering to procedural requirements in tax law and the burden placed on taxpayers to substantiate claims for exemptions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Customs Department,
GOVERNMENT OF PAKISTAN,
HASHWANI HOTELS LIMITED,
Board of Investment, Government of Pakistan,
Karachi Shipyard & Engineering Works
|
| Judges |
IFTIKHAR MUHAMMAD CHAUDHRY
|
| Lawyers |
Mr. Fakhr-ud-Din G. Ebrahim, ASC,
Mr. K.A. Wahab, AOR,
Ms. Naheeda Mehboob Ellahi, DAG,
Malik Ittaat Hussain, ASC,
Raja Abdul Ghafoor, AOR,
Mr. M.S. Khattak, AOR,
Mr. Mumtaz Ahmed, Member Legal CBR
|
| Petitioners |
HASHWANI HOTELS LIMITED
|
| Respondents |
GOVERNMENT OF PAKISTAN through Secretary Ministry of Finance and others
|
| Citations |
2007 SLD 3513,
2007 PLJ 54
|
| Other Citations |
PLD 1988 SC 370,
2006 SCMR 1577
|
| Laws Involved |
Sales Tax Act, 1990,
Customs Act, 1969,
Constitution of Pakistan, 1973
|
| Sections |
5,
25,
31-A,
79,
104,
185(3),
199
|