| Case ID |
2dfd3372-a00a-40c0-b429-fa42c2c8940a |
| Body |
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| Case Number |
C.A. Nos.1388 and 1389 of 2002, 410 to 418 of 2005 |
| Decision Date |
Feb 15, 2007 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeals, affirming the decisions of the High Courts that excise duty should not be included in the retail price for its determination. The court emphasized that the terms 'tax' and 'duty' are distinct, and the inclusion of excise duty in the retail price would lead to double taxation, which is against the provisions of the Central Excise Act. The court upheld the interpretation that the excise duty is levied only once after the retail price is fixed and reiterated that the legislative intent was to keep these terms separate to avoid confusion and ensure fairness in taxation. |
| Summary |
In this landmark case decided by the Supreme Court of Pakistan, the central issue revolved around the interpretation of subsection (2) of section 4 of the Central Excise Act, 1944. The court examined whether excise duty should be included in the retail price fixed by manufacturers for the purposes of determining the value upon which the excise duty is levied. The court concluded that excise duty is a distinct levy and should not be conflated with retail prices. By dismissing the appeals, the court reinforced the principle of avoiding double taxation and clarified the definitions of 'tax' and 'duty' within the framework of the law. This case serves as a precedent for future interpretations of taxation laws in Pakistan, ensuring clarity and fairness in the taxation process. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
RANA BHAGWANDAS,
NASIR-UL-MULK,
SYED JAMSHED ALI
|
| Lawyers |
M. Sardar Khan, Senior Advocate Supreme Court,
M. Mumtaz A. Sh., Legal Member,
M.S. Khattak, Advocate-on-Record,
Ejaz M. Khan, Advocate-on-Record,
Sh. Izhar-ul-Haq, Advocate Supreme Court,
Ali Sibtain Fazli, Advocate Supreme Court,
Ashtar Ausaf Ali, Advocate Supreme Court,
S. Najmul Hassan Kazmi, Advocate Supreme Court,
Wasim Sajjad, Senior Advocate Supreme Court
|
| Petitioners |
PAKISTAN THROUGH SECRETARY FINANCE & OTHERS
|
| Respondents |
M.S. Khattak,
Ashtar Ausaf Ali,
M. Sardar Khan,
M. Mumtaz A. Sh.,
Ejaz M. Khan,
Sh. Izhar-ul-Haq,
Ali Sibtain Fazli,
S. Najmul Hassan Kazmi,
Wasim Sajjad
|
| Citations |
2007 SLD 180,
2007 SCMR 1367,
(2007) 96 TAX 139,
2007 PTD 1656
|
| Other Citations |
The Marriage Hall Association v. Government of Sindh 1999 YLR 1247,
Messrs Elahi Cotton Mills Ltd. and others v. Federation of Pakistan through Secretary M/o Finance, Islamabad and others PLD 1997 SC 582,
Messrs Central Insurance Co. and others v. The Central Board of Revenue; Islamabad and others 1993 SCMR 1232,
Atlas Battery Ltd. v. Superintendent Central Excise and Land Customs, Circle 'C' Karachi and others PLD 1984 SC 86,
The Province of Madras v. Messrs Boddu Paidanna & Sons AIR (29) 1942 Federal Court 33,
Governor General in Council v. Province of Madras AIR (32) 1945 Privy Council 98 Federal Court,
Muhammad Ismail and others v. The State PLD 1969 SC 241,
Government of Pakistan and others v. Hashwani Hotel Limited (Messrs) PLD 1990 SC 68,
Pakistan Textile Mill Owners Association, Karachi and 2 others v. Administrator of Karachi and 2 others PLD 1963 SC 137,
Messrs Hirjina & Co. (Pakistan) Ltd., Karachi v. Commissioner of Sales Tax Central, Karachi 1971 SCMR 128,
The State v. Zia-ur-Rahman and others PLD 1973 SC 49,
United Bank Limited v. Canadian Apparel Company Ltd. and others PLD 1995 Kar. 577,
Messrs Lucky Cement Limited v. C.B.R. and others 2003 PTD 1002,
Pakistan Beverages Limited v. Federation of Pakistan C.P. No.D-1926 of 2002,
High Court of Sindh, Karachi, Collector of Customs and Central Excise Customs House, Multan v. Messrs Dairies, Kabirwala and others C.Ps. 1527/L to 1530/L and 1576/L to 1579/L of 2000 Supreme Court
|
| Laws Involved |
Central Excise Act, (I of 1944)
|
| Sections |
4(2)
|