| Case ID |
22c5bc0e-c76e-48c8-a178-1b24935b45d9 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeals Nos. 1512 and 1686 of 1999 |
| Decision Date |
Jan 31, 2001 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the civil appeals and petitions, affirming the High Court's decision which had prohibited the inclusion of chilling charges in the retail price of aerated drinks for the purpose of calculating central excise duty. The Court held that the retail price must be fixed by the manufacturer and should only include charges that the manufacturer has actually incurred. The judgment emphasized that the chilling charges, not incurred by the manufacturers, should not be transferred to consumers through retail pricing. The ruling underscored the rights of manufacturers to determine their pricing structure without external impositions that do not reflect actual costs. |
| Summary |
This case revolves around the interpretation of the Central Excise Act and the rights of manufacturers to determine the retail price of their products. The Supreme Court of Pakistan addressed whether chilling charges could be included in the retail price for the purposes of calculating central excise duty. The appellants argued that these charges should be included as the beverages were sold in chilled condition, while the respondents contended that they supplied their products in unchilled condition and thus should not be compelled to include costs they did not incur. The Court ruled in favor of the respondents, affirming that manufacturers have the prerogative to fix retail prices based solely on their incurred costs, without the burden of additional charges that do not reflect actual expenses. This decision is significant in terms of tax law and the rights of manufacturers, ensuring they are not unfairly taxed on costs they do not bear. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Messrs RIAZ BOTTLERS (PVT.) LTD., LAHORE,
COLLECTOR, CENTRAL EXCISE, CUSTOM HOUSE, LAHORE
|
| Judges |
IFTIKHAR MUHAMMAD CHAUDHRY,
HAMID ALI MIRZA
|
| Lawyers |
A. Karim Malik, Senior Advocate Supreme Court for Appellants (in C.As. Nos. 1512 and 1686 of 1999),
Sh. Izharul Haq, Advocate Supreme Court for Petitioners (in C.P No. 1916L of 1999),
Ch. Saghir Ahmad, Advocate Supreme Court for Petitioners (in C. Ps. Nos. 185L of 1999, 198L, 1060L and 1061L of 2000),
K. M. Virk, Advocate Supreme Court for Petitioners (in C.Ps. Nos.865L, 951L and 1064L of 2000),
Ali Sibtain Fazli, Advocate Supreme Court for the Private Respondent (in C. A. No. 1512 of 1999),
Ashtar Ausaf Ali, Advocate Supreme Court for Appellants (in C.A. No. 1686 of 1999 and for Petitioners in C. P. No. 865L of 2000),
Raja Muhammad Akram, Advocate Supreme Court for Respondent (in C. P. No. 1916L of 1999)
|
| Petitioners |
Messrs RIAZ BOTTLERS (PVT.) LTD., LAHORE
|
| Respondents |
COLLECTOR, CENTRAL EXCISE, CUSTOM HOUSE, LAHORE and others
|
| Citations |
2001 SLD 770,
2001 PTD 1854,
2004 PTCL 298
|
| Other Citations |
PLD 1984 SC 86,
1989 CLC 1134,
1992 SCMR 250,
1993 SCMR 447,
1999 PTD 1892,
1990 PTD 155
|
| Laws Involved |
Central Excise Act, (I of 1944),
Constitution of Pakistan, 1973
|
| Sections |
4,
4(2),
185(3),
199
|