| Case ID |
2e9af09b-b5c5-4db1-ba24-d711652a6993 |
| Body |
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| Case Number |
Writ Petition No. 1075 of 1990 |
| Decision Date |
Jul 10, 2001 |
| Hearing Date |
Jul 10, 2001 |
| Decision |
The Lahore High Court dismissed the writ petition filed by International Beverages (PVT.) LTD, seeking a refund of sales tax paid on intermediary goods that were incorporated into exempted end-products. The court ruled that the term 'subject to the tax' in Section 2(12) of the Sales Tax Act, 1951, implies 'subject to the payment of tax', and therefore, the petitioner was not entitled to a refund since the sales tax was included in the price of the final product sold to consumers. The court upheld the earlier rulings that established a precedent for this interpretation, indicating that the sales tax incidence had effectively been passed on to consumers, negating any claim for refund by the petitioner. |
| Summary |
In the case of Writ Petition No. 1075 of 1990, the Lahore High Court dealt with a significant issue concerning the Sales Tax Act, 1951, specifically regarding the refund of sales tax on intermediary goods used in the production of exempted end-products. The petitioner, International Beverages (PVT.) LTD, argued that they were entitled to a refund of sales tax paid on goods such as carbon dioxide gas and flavoring agents, which were incorporated into their soft drink products. The court emphasized the interpretation of 'subject to the tax' as outlined in Section 2(12) of the Sales Tax Act, concluding that since the end-product was exempt from sales tax, the intermediary goods could not be claimed for a refund. This ruling reinforced the principle that the burden of sales tax had been effectively passed on to consumers, thus denying the petitioner's claim for a refund. The case highlights the complexities surrounding tax law and the implications for manufacturers in Pakistan, particularly in the beverage industry. Keywords such as 'Sales Tax Refund', 'Lahore High Court', 'Intermediary Goods', and 'Tax Law in Pakistan' are essential for understanding the relevance of this case. |
| Court |
Lahore High Court
|
| Entities Involved |
GOVERNMENT OF PAKISTAN,
INTERNATIONAL BEVERAGES (PVT.) LTD
|
| Judges |
MAULVI ANWARUL HAQ, J
|
| Lawyers |
Saleem Zulfiqar Khan for Petitioner,
Iftikhar Javaid, Standing Counsel,
Asif Jah for Respondent
|
| Petitioners |
INTERNATIONAL BEVERAGES (PVT.) LTD
|
| Respondents |
2 others,
GOVERNMENT OF PAKISTAN through Additional Secretary, Ministry of Finance (Central Board of Revenue), Karachi
|
| Citations |
2002 SLD 550,
2002 PTD 311,
(2002) 86 TAX 264
|
| Other Citations |
Commissioner of Sales Tax North Zone (West) Pakistan, Lahore .v. H. Muhammad Hussain & Co., Lahore 1974 PTD 20,
Commissioner of Sales Tax, Rawalpindi Zone, Rawalpindi v. Shafiq Corporation Ltd., Gujrat 1974 PTD 15,
Messrs Noorani Cotton Corporation v. The Sales Tax Officer PLD 1965 SC 161,
Latif Bawany Jute Mills Ltd. and 4 others v. The Sale Tax Officer, Dacca 1971 PTD 26,
The Commissioner of Sales Tax v. Messrs Shaiq Corporation Ltd. PLD 1986 SC 731,
Abbasi Textile Mills Ltd. v. Commissioner of Sales Tax (East), Karachi PLD 1990 SC 422,
Commissioner of Sales Tax v. Hunza Central Asian Textile and Woolen Mills Ltd. 1999 SCMR 526 = 1999 PTD 1135,
Central Board of Revenue and others v. Messrs Champion Clock Company 1996 SCMR 1468
|
| Laws Involved |
Sales Tax Act, (III of 1951)
|
| Sections |
2,
2(12),
27(1)
|