| Case ID |
1ffa4dcb-6bc5-4717-b3fc-4bcb4a13abf2 |
| Body |
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| Case Number |
Suits Nos. 2067, 2671, 1881, 1973, 2015, 2159, 199 |
| Decision Date |
Aug 02, 2019 |
| Hearing Date |
May 16, 2019 |
| Decision |
The Sindh High Court ruled that the pharmaceutical companies were not entitled to claim exemption from sales tax on the import of packaging materials. It was held that the exemption under Entry No. 105 of the Sixth Schedule to the Sales Tax Act, 1990, was specifically limited to raw materials for the manufacture of pharmaceutical active ingredients and products, and did not extend to packing materials. The court emphasized the principle of 'casus omissus', stating that courts cannot add provisions that are not included in the statute, reinforcing the legislative intent. The suits were dismissed with the court ruling that the definitions of 'raw materials' did not encompass packing materials, leading to the conclusion that the plaintiffs' claims for exemption were inadmissible under the current legal framework. |
| Summary |
In the landmark case involving multiple suits by pharmaceutical companies against the Federation of Pakistan, the Sindh High Court addressed the critical issue of sales tax exemptions on packaging materials. The court's decision hinged on the interpretation of the Sales Tax Act, 1990, specifically Entry No. 105 of the Sixth Schedule, which delineates the categories of raw materials eligible for exemption. The court's ruling clarified that while active ingredients and pharmaceutical products could qualify for exemptions, packing materials did not meet the criteria set forth in the statute. This case underscores the importance of precise legislative language and the principle of 'casus omissus', which prevents courts from extending exemptions beyond what is explicitly stated. The outcome has significant implications for the pharmaceutical industry, particularly regarding the financial burdens imposed by sales taxes on imported materials essential for production. As the legal landscape evolves, stakeholders must navigate these complexities to ensure compliance and optimize their operations. |
| Court |
Sindh High Court
|
| Entities Involved |
Customs Department,
Federation of Pakistan,
Getz Pharma (PVT.) Limited
|
| Judges |
Muhammad Junaid Ghaffar
|
| Lawyers |
Mohammad Vawda,
Ammar Yasir,
Osman A. Hadi,
Ms. Fozia Rasheed
|
| Petitioners |
Messrs Getz Pharma (PVT.) Limited,
Mohammad Vawda,
Ammar Yasir,
Osman A. Hadi
|
| Respondents |
Federation of Pakistan through Secretary,
Ms. Fozia Rasheed (PQA)
|
| Citations |
2019 SLD 2964,
2019 PTD 2209
|
| Other Citations |
2015 PTD 1532,
PLD 1975 Lah. 631,
PLD 1970 SC 93,
PLD 1986 SC 731,
1971 PTD 26,
2017 PTD 603,
1989 CLC 1642,
2003 PTD 986,
PLD 2005 SC 577,
PLD 1992 SC 455,
PLD 2017 SC 99,
2007 SCMR 1131,
2002 PTD 470,
2002 PTD 609,
PLJ 1975 Kar. 14,
2018 PTD 114,
2018 SCMR 1444
|
| Laws Involved |
Sales Tax Act, 1990,
Civil Procedure Code (V of 1908)
|
| Sections |
3,
13,
6th Schedule,
O.XIV,R.2
|