| Case ID |
32223715-dc53-4e31-a859-35798c8e3413 |
| Body |
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| Case Number |
Civil Reference No. 94 of 1960 |
| Decision Date |
Dec 19, 1962 |
| Hearing Date |
Dec 11, 1962 |
| Decision |
The Sindh High Court ruled that the sales tax is not applicable to goods manufactured before the enforcement of the Sales Tax Act III of 1951. The critical factor in determining tax liability is the date of manufacture, not the date of sale. The court determined that goods sold after the 30th June 1951 but manufactured before that date do not fall under the definition of 'manufacturer or producer' as per the new Act. Therefore, the respondent, DADA PLASTIC WORKS, should be taxed as a dealer under the old Act V of 1948 for goods manufactured prior to the new Act's enforcement. |
| Summary |
The case revolves around the applicability of the Sales Tax Act of 1951 to goods manufactured before its enforcement. The Sindh High Court examined whether DADA PLASTIC WORKS, which sold goods manufactured prior to July 1, 1951, was liable for sales tax under the new Act. The court concluded that since these goods were manufactured before the Act's enforcement, they do not qualify for taxation as a manufacturer or producer. The court emphasized the importance of the manufacture date over the sale date in tax liability determination, leading to the decision that the respondent should be taxed under the older Act V of 1948. This case highlights key aspects of tax law, particularly the definitions and implications of manufacturing and sales tax obligations in Pakistan. |
| Court |
Sindh High Court
|
| Entities Involved |
THE COMMISSIONER OF SALES TAX, SOUTH ZONE, KARACHI,
DADA PLASTIC WORKS
|
| Judges |
Inamullah,
A. S. Faruqui
|
| Lawyers |
Noorul Arifin,
Ali Athar
|
| Petitioners |
THE COMMISSIONER OF SALES TAX, SOUTH ZONE, KARACHI
|
| Respondents |
DADA PLASTIC WORKS
|
| Citations |
1963 SLD 14,
1963 PLD 372
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act
|
| Sections |
3,
3(1)(a)
|