| Case ID |
2bf1beaf-f7b8-4553-b8d2-23b4cbe1b4ea |
| Body |
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| Case Number |
Sales Tax Reference Application No.1 of 2009 |
| Decision Date |
Jun 16, 2009 |
| Hearing Date |
Jun 03, 2009 |
| Decision |
The Islamabad High Court ruled that the process of gamma sterilization conducted by the petitioner does not constitute 'manufacture' under the Sales Tax Act. The court found that the sterilization process does not change the structure or use of the medical products, thus rendering the petitioner not liable for sales tax on the sterilization charges. The court highlighted that the activity did not fall under the definition of 'supply' or 'manufacture' as per the applicable sections of the Sales Tax Act, and therefore, the sales tax could not be levied on the petitioner's receipts from the sterilization services. The court's decision emphasized the importance of the definitions provided in the Sales Tax Act and clarified the distinction between manufacturing and service provision. |
| Summary |
In the case of Messrs ALTECHNIQUE CORPORATION OF PAKISTAN LTD. vs. ADDITIONAL COLLECTOR ADJUDICATION, the Islamabad High Court addressed the issue of whether the gamma sterilization services provided by the petitioner constituted manufacturing under the Sales Tax Act. The court determined that the sterilization process did not result in a distinct product nor did it transform the medical items in a way that would classify the activity as manufacturing. The ruling clarified that only taxable supplies made in the course of a taxable activity are subject to sales tax. The decision further reinforced the legal definitions within the Sales Tax Act, particularly sections concerning 'manufacture' and 'supply', highlighting that the mere provision of sterilization services does not incur sales tax liabilities. This case is significant for businesses involved in similar activities, as it delineates the boundaries of taxable services versus manufacturing, guiding future compliance with sales tax regulations. |
| Court |
Islamabad High Court
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD MUNIR PERACHA,
MUHAMMAD RAMZAN CHAUDHRY
|
| Lawyers |
Not available
|
| Petitioners |
Messrs ALTECHNIQUE CORPORATION OF PAKISTAN LTD.
|
| Respondents |
4 others,
ADDITIONAL COLLECTOR ADJUDICATION, SALES TAX, ISLAMABAD
|
| Citations |
2009 SLD 1289 = 2009 PTD 1702
|
| Other Citations |
Messrs AMIE Investment (Pvt.) Ltd. v. Additional Collector and others 2006 PTD 1459,
Ramna Fitting and Pipe Industry v. The Collector of Sales Tax 2002 PTD 470
|
| Laws Involved |
Sales Tax Act (VII of 1990)
|
| Sections |
2(16),
2(17),
2(33),
3
|