| Case ID |
227bedfb-fbcf-4c24-943c-59ae340f6777 |
| Body |
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| Case Number |
HCA 259 of 2019 |
| Decision Date |
Dec 24, 2021 |
| Hearing Date |
Oct 06, 2021 |
| Decision |
The court determined that the import of packing material used in the manufacture of pharmaceutical products is not entitled to exemption from sales tax under Entry 105 of the 6th Schedule to the Sales Tax Act, 1990. The court found that the definition of 'raw material' does not encompass packing materials, as they are not essential for the basic manufacture of pharmaceutical active ingredients. The court emphasized the importance of adhering to statutory definitions and interpretations, ruling that the packaging does not constitute an inseparable part of the manufacturing process for pharmaceutical products. Consequently, the appeals were dismissed, and the previous judgment was upheld, confirming that no exemption for sales tax on packaging material can be granted under the existing law. |
| Summary |
In the landmark case before the Sindh High Court, the primary issue revolved around the exemption from sales tax for packing materials utilized in the pharmaceutical industry. The appellants, Getz Pharma and others, argued that packaging materials should be classified as 'raw materials' under Entry 105 of the Sales Tax Act, 1990. They contended that without these materials, pharmaceutical products could not be effectively marketed or distributed. However, the court ruled against this interpretation, stating that the statutory definitions of 'raw materials' do not include packing materials. This decision underscores the strict interpretation of fiscal statutes, emphasizing that exemptions must be clearly defined within the law. The court's ruling highlights the necessity for pharmaceutical companies to comply with tax regulations and reinforces the importance of legislative clarity in taxation matters. This case serves as a critical reference for future interpretations of tax exemptions within the pharmaceutical sector. |
| Court |
Sindh High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
GETZ PHARMA (PVT.) LIMITED
|
| Judges |
MUHAMMAD SHAFI SIDDIQUI,
AGHA FAISAL
|
| Lawyers |
Khalid Mehmood Siddiqui,
Kafeel Ahmed Abbasi,
Shakeel Ahmed,
Masooda Siraj,
Ali Qambar Askari,
Muhammad Vawda,
Khalid Rajpar,
Shahid Ali Qureshi,
Rana Sakhawat Ali,
Zafar Imam,
Dr. Shah Nawaz Memon,
Faiz Ahmed,
Salman J. Mirza,
Hussain Idris,
Taha Samad,
Abdul Ahad,
Fayaz Ali Melto,
Hussain Bohra,
Noor Nabi
|
| Petitioners |
Others,
GETZ PHARMA (PVT.) LIMITED
|
| Respondents |
FEDERATION OF PAKISTAN,
Others
|
| Citations |
2024 SLD 247 = (2024) 129 TAX 312
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Civil Procedure Code (V of 1908)
|
| Sections |
31
|