| Case ID |
3887aad4-d5e5-4739-a56f-990782f9d8d9 |
| Body |
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| Case Number |
Civil Appeals Nos. 435 of 1999, 499, 819, 1344 to |
| Decision Date |
Mar 08, 2005 |
| Hearing Date |
Nov 23, 2004 |
| Decision |
The Supreme Court of Pakistan dismissed the appeals, ruling that the import of goods into Pakistan is a distinct taxable event under section 3(1)(b) of the Sales Tax Act of 1990. The Court emphasized that the tax liability arises at the moment goods enter the territory of Pakistan, regardless of their final destination, thereby reaffirming the authority of the Federal Legislature to levy sales taxes on imported goods. The ruling clarified that the Sales Tax Act and the Customs Act are applicable to transactions involving goods imported into Pakistan, and the exemptions granted by the Azad Jammu and Kashmir government do not negate this tax liability. The Court's decision underscored the importance of interpreting the laws consistently and maintaining the integrity of the tax system across jurisdictions. |
| Summary |
The Supreme Court of Pakistan's decision in the appeals concerning the applicability of sales tax on goods imported into Pakistan from Azad Jammu and Kashmir clarified that the importation of goods is an independent taxable event. The Court ruled that sales tax is levied as soon as goods enter Pakistan, emphasizing that this tax is not contingent upon the final destination of the goods. This interpretation aligns with the constitutional framework and the relevant tax laws, reinforcing the authority of the Federal Legislature over such matters. The ruling has significant implications for businesses operating in AJK and those importing goods into Pakistan, ensuring compliance with tax regulations. The Court's emphasis on maintaining consistency in the interpretation of tax laws serves to uphold the integrity of the fiscal system. This case highlights the complexities surrounding cross-border taxation and the need for clarity in legal frameworks governing trade and taxation. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Government of Pakistan,
PAV Industrial Co,
Master Foam (Pvt.) Ltd.,
Diamond Polymers (Pvt.) Ltd.,
English Copper (Pvt.) Ltd.,
Shadabia Industries (Pvt.) Ltd.,
Sunny Industries,
Martial Enterprises,
Metro Flex Industries (Pvt.) Ltd.
|
| Judges |
Nazim Hussain Siddiqui, C.J.,
Abdul Hameed Dogar,
Mian Shakirullah Jan
|
| Lawyers |
Abid S. Zuberi, Advocate Supreme Court,
S.M. Zafar, Senior Advocate Supreme Court,
Irtaza Naqvi, Advocate,
Najamul Hasan Kazmi, Advocate Supreme Court,
Nemo,
Mahmoodul Islam, Advocate-on-Record,
Jawahar A. Naqvee, Advocate Supreme Court,
Ch. Muhammad Akram, Advocate-on-Record,
Makhdoom Ali Khan, Attorney-General for Pakistan,
Uzair Karamat Bhindari, Advocate,
Suleman Hameed Afridi, Barrister,
Fakhruddin G. Ibrahim, Senior Advocate Supreme Court,
Raja Abdul Ghafoor, Advocate-on-Record,
Izharul Haq, Advocate Supreme Court,
Sohail Akhtar, Advocate Supreme Court,
Malik Itaat Hussain, Advocate Supreme Court
|
| Petitioners |
Messrs MASTER FOAM (PVT.) LTD.,
PAV Industrial Co,
M/s. Sunny Industries,
M/s. Martial Enterprises,
M/s. Metro Flex Industries (Pvt.) Ltd.,
Diamond Polymers (Pvt.) Ltd.,
M/s English Copper (Pvt.) Ltd.,
M/s Shadabia Industries (Pvt.) Ltd.
|
| Respondents |
GOVERNMENT OF PAKISTAN through Secretary, Ministry of Finance and others
|
| Citations |
2005 SLD 707,
2005 PLD 373
|
| Other Citations |
Noor Hussain v. State PLD 1966 SC 88,
Pakistan v. Public at large PLD 1987 SC 304,
The Central India Spinning and Weaving and Manufacturing Co. v. The Empress Mills/Municipal Committee; Wardha AIR 1958 SC 341,
Brown v. State of Maryland 6 L Ed. 678,
Timber Traders Association v. District Board AIR 1965 Pun. 97,
Messrs Najhib Zarab v. Government of Pakistan PLD 1993 Kar. 93,
Commissioner of Sales Tax v. Hunza Central Asian Textile and Woollen Mills Ltd. 1999 SCMR 526,
Sheikhoo Sugar Mills Ltd. v. Government of Pakistan 2001 PTD 2097 = 2001 SCMR 1376,
Pakistan Industrial Development Corporation v. Pakistan 1992 SCMR 891,
Riaz Bottlers (Pvt.) Ltd. v. Federation of Pakistan 2000 PTD 485,
Pakistan Textile Mill-owners' Association v. Administrator of Karachi PLD 1963 SC 137,
East and West Steamship Co. v. Collector of Customs PLD 1976 SC 618,
Messrs Tahseen (Pvt.) Ltd. v. Additional Collector of Customs Dry Port, Rawalpindi 1998 PTD 2561,
Mushtaq Awan v. Government of Pakistan PLD 1999 Lah. 372,
WAPDA v. Collector of Central Excise and Sales Tax 2002 PTD 2077,
Gramophone Co. of India v. Birendra Bahadur Pandey (1984) 2 SCC 534,
Zaman Cement v. Central Board of Revenue 2001 CLC 1625,
Lahore Textile and General Mills Ltd. v. Collector of Customs, Lahore PLD 1988 Lah. 563,
Hilal Tanneries Ltd. v. Zila Council, Gujrat 1994 MLD 2366
|
| Laws Involved |
Sales Tax Act (VII of 1990),
Customs Act (IV of 1969),
Constitution of Pakistan (1973)
|
| Sections |
3(b),
3(1)(b),
Fourth Schedule; Federal Legislative List, Part I, Item No. 49,
Art. 1
|