| Case ID |
1b4a42a4-66c6-4baf-82c3-7a85fe512509 |
| Body |
View case body. Login to View |
| Case Number |
Civil Petitions for Special Leave to Appeal Nos. 2 |
| Decision Date |
Feb 17, 1980 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan decided that the cotton waste produced by the petitioners is a manufactured article and thus subject to sales tax under the Sales Tax Act. The court confirmed that the process of blowing cotton separates inferior fiber, which is capable of being sold as a distinct product. This decision reinforces the interpretation of manufactured goods within the context of the law, establishing that even by-products from the manufacturing process can have distinct marketability and value. The court dismissed the petitions, agreeing with the Lahore High Court's findings on the taxable nature of the goods sold by the petitioners. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act, specifically focusing on whether cotton waste produced during the manufacturing process qualifies as a manufactured article. The Supreme Court of Pakistan affirmed the Lahore High Court's decision, which held that cotton waste, after undergoing processes such as ginning and blowing, is not merely refuse but a distinct product with its own market value. The court emphasized that the definition of 'manufacture' includes products that emerge from a process, even if they are not the primary goods intended for production. This case sets a precedent in the realm of tax law concerning manufactured goods and their classification under the Sales Tax Act, effectively broadening the scope of taxable products in the textile industry. Keywords: Sales Tax, Cotton Waste, Manufactured Goods, Tax Law, Supreme Court of Pakistan, Textile Industry. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Colony Textile Mills Ltd,
Zeenat Textile Mills Ltd,
Crescent Textile Mills Ltd,
Sales Tax Officer
|
| Judges |
Dorab Patel,
Nasim Hasan Shah
|
| Lawyers |
Javed Hashmi, Advocate Supreme Court,
Mehdi Anwar, Advocate-on-Record,
Sh. Abdul Haque, Advocate Supreme Court,
Riazul Haq Sh., Advocate Supreme Court,
Iftikhar-ud-Din Ahmed, Advocate-on-Record
|
| Petitioners |
Messrs Colony Textile Mills Ltd,
Messrs Zeenat Textile Mills Ltd,
Messrs Crescent Textile Mills Ltd
|
| Respondents |
The Commissioner of Sales Tax, Lahore Zone, Lahore
|
| Citations |
1980 SLD 118,
1980 PTD 201,
(1980) 42 TAX 114
|
| Other Citations |
P L D 1965 S C 161,
P L D 1959 S C (Pak.) 103
|
| Laws Involved |
Sales Tax Act, (III of 1951)
|
| Sections |
3,
2(11)
|