| Case ID |
2cd9695e-f1d4-4722-9d82-0d3fdff82f74 |
| Body |
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| Case Number |
W.P. No. 128697 of 2018 |
| Decision Date |
Jan 12, 2021 |
| Hearing Date |
Jan 12, 2021 |
| Decision |
The Lahore High Court dismissed the petition challenging the vires of the Federal Board of Revenue's notification which fixed the value of domestically produced white crystalline sugar at Rs. 60 per K.G. The Court held that the notification was validly issued under the first proviso to sub-section (46) of Section 2 of the Sales Tax Act, 1990. The petitioner argued that the market price was lower than the fixed value, but the Court found this argument misconceived. It clarified that the law does not allow for the market price to prevail over the fixed value set by the Board when the latter is challenged. The Court reiterated that a proviso has an overriding effect and modifies the main provision, thus affirming the Board's authority to fix the value of taxable supplies regardless of market conditions. |
| Summary |
This case revolves around the Lahore High Court's decision regarding the validity of a notification issued by the Federal Board of Revenue (FBR) under the Sales Tax Act, 1990, which fixed the value of white crystalline sugar at Rs. 60 per K.G. The petitioner, Pattoki Sugar Mills Limited, contended that the fixed price was higher than the market price of sugar, arguing that they should not be liable to pay sales tax based on the higher fixed value. The Court analyzed the relevant provisions of the Sales Tax Act, particularly Section 2(46), which defines the value of taxable supplies. It emphasized that the first proviso to this section permits the Board to set the value of taxable supplies, irrespective of market price conditions. The Court concluded that the notification was lawfully issued and that the petitioner's arguments against it were unfounded. This case highlights the importance of statutory interpretation and the powers vested in revenue authorities under the law. |
| Court |
Lahore High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
PATTOKI SUGAR MILLS LIMITED
|
| Judges |
ABID AZIZ SHEIKH, JUSTICE
|
| Lawyers |
Mr. Arshad Nazir Mirza, Advocate,
Mr. Shezal Khan Burki, Advocate,
Malik Abdullah Raza, Advocate
|
| Petitioners |
PATTOKI SUGAR MILLS LIMITED
|
| Respondents |
FEDERATION OF PAKISTAN ETC.
|
| Citations |
2021 SLD 2027,
2021 PLJ 363
|
| Other Citations |
K.E.S.C. Progressive Workers Union through its Chairman and others vs. K.E.S.C. Labour Union through its General Secretary and others (1991 SCMR 888),
Collector of Custom Appraisement, Collectorate Customs House Karachi vs. M/s Gul Rehman Proprietor, M/s G. Kin Enterprises (2017 SCMR 339)
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973
|
| Sections |
2(46)(h)(i)(j),
199
|