| Case ID |
31bf9bd2-5e56-401a-a1e2-4a7c215d874e |
| Body |
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| Case Number |
Civil Petitions Nos.2837-L, 2921-L, 2929-L, 2942-L |
| Decision Date |
Feb 11, 2004 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan, in its decision dated February 11, 2004, addressed multiple civil petitions concerning the imposition of sales tax on bagasse, an intermediary product in sugar production. The Court emphasized that petitioners must raise specific pleas before the Sales Tax Authorities to claim adjustments for output tax on by-products such as molasses and pressed mud against the input tax on bagasse. The Court directed that the additional sales tax on bagasse should be collected at a rate specified by Notification S.R.O. No.178(I)/2002, effective from the period when no exemption was granted. The ruling highlighted the necessity for petitioners to follow procedural requirements in tax matters and clarified the conditions under which adjustments could be claimed. The judgment reinforced the principle of tax liability and the importance of adhering to statutory provisions in tax disputes. |
| Summary |
This case revolves around the complex interplay of the Sales Tax Act, 1990, and the constitutional provisions regarding taxation in Pakistan, specifically concerning the sugar industry. The Supreme Court's ruling clarifies the procedures for sugar mill owners to adjust their sales tax liabilities on by-products against the input tax on bagasse. The key takeaway is that manufacturers must formally present their claims to the Sales Tax Authorities while adhering to the regulatory framework established by the Sales Tax Act. The judgment also reaffirms the tax obligations of the sugar mills and the importance of compliance with the legal requirements in tax assessments. It emphasizes the critical nature of timely and appropriate legal representation in taxation matters, ensuring that businesses can navigate the complexities of tax law effectively. This case serves as a precedent for similar tax disputes in the agricultural and manufacturing sectors, showcasing the judiciary's role in interpreting tax laws and protecting the rights of businesses in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
CHANAR SUGAR MILLS LTD.,
Collector Customs Sales Tax,
Central Excise, Faisalabad
|
| Judges |
IFTIKHAR MUHAMMAD CHAUDHRY,
KHALIL-UR-REHMAN RAMDAY,
FALAK SHER
|
| Lawyers |
M.A. Zafar, Advocate Supreme Court,
Ch. Mehdi Khan Mehtab, Advocate-on-Record,
Hamid Khan, Advocate Supreme Court,
Ahmed Bilal Sufi, Advocate Supreme Court,
Faiz-ur-Rehman, Advocate-on-Record,
Shahid Karim, Advocate Supreme Court,
Mahmood-ul-Islam, Advocate-on-Record,
Syed Mansoor Ali Shah, Advocate Supreme Court,
M.A. Qureshi, Advocate Supreme Court,
Sh. Izhar-ul-Haq, Advocate Supreme Court,
Tanvir Ahmed, Advocate-on-Record,
Imtiaz Rashid Siddiqui, Advocate Supreme Court,
Sh. Salah-ud-Din, Advocate-on-Record,
Nemo for Respondents
|
| Petitioners |
,
CHANAR SUGAR MILLS LTD.
|
| Respondents |
,
COLLECTOR, CUSTOMS SALES TAX AND CENTRAL EXCISE, FAISALABAD
|
| Citations |
2008 SLD 292 = 2008 SCMR 1467
|
| Other Citations |
Sheikhoo Sugar Mills Ltd. v. Government of Pakistan and others 2001 SCMR 1376
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973
|
| Sections |
2,
2(46)(a)(i),
2(46)(c),
3,
33,
34,
36,
185(3)
|