| Case ID |
36d786c0-eef8-4fbb-a7ec-4f96c314d395 |
| Body |
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| Case Number |
CIVIL APPEAL No. 1348 OF 2006 |
| Decision Date |
Nov 18, 2015 |
| Hearing Date |
Nov 09, 2015 |
| Decision |
The Supreme Court of Pakistan dismissed the appeal, affirming the judgment of the Lahore High Court. The Court found that the SRO 456(I)/96 was applicable and provided a 'Nil' excise duty on cane sugar. The Court highlighted the importance of clear and unambiguous language in fiscal statutes, emphasizing that duties and taxes must not be imposed based on conjecture. The Court ruled that since the respondent did not export any sugar, they were not liable to pay excise duty, aligning with the principle that any ambiguity in tax law should be construed in favor of the taxpayer. |
| Summary |
This case revolves around the interpretation of the Central Excise Act, specifically section 12A, concerning the excise duty on cane sugar produced by Fauji Sugar Mills. The Supreme Court addressed the conflicting statutory regulatory orders (SROs) issued by the Federal Government, namely SRO 455 and SRO 456, which impacted the excise duty rate applicable to sugar manufacturers. The Court concluded that SRO 456, which provided a 'Nil' rate of excise duty on cane sugar, was favorable to the taxpayer, thus dismissing the appeal by the Superintendent of Central Excise. The case underscores the need for clarity in tax legislation and how ambiguous provisions should be interpreted to benefit taxpayers. Keywords: Central Excise Act, SRO 455, SRO 456, excise duty, cane sugar, Supreme Court of Pakistan, tax law interpretation. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Federal Government,
Excise Department
|
| Judges |
MR. JUSTICE EJAZ AFZAL KHAN,
MR. JUSTICE QAZI FAEZ ISA,
MR. JUSTICE MAQBOOL BAQAR
|
| Lawyers |
Sheikh Izhar-ul-Haq, Advocate Supreme Court,
Malik Shakil-ur-Rehman, Advocate Supreme Court,
Raja Abdul Ghafoor, Advocate on-Record,
Mr. Muhammad Azam Chattha, Legal Advisor
|
| Petitioners |
Superintendent, Central Excise, Sheikhupura
|
| Respondents |
Fauji Sugar Mills, Sangla Hills, Sheikhupura
|
| Citations |
2016 SLD 9,
(2016) 113 TAX 138,
2016 PTD 564,
2016 PTCL 1,
2016 SCMR 121
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Central Excise Act, (I of 1944)
|
| Sections |
12A,
12A(1)
|