| Case ID |
3aaa90f6-2093-456c-8809-fe9530c509f8 |
| Body |
View case body. Login to View |
| Case Number |
D-5 of 1989 |
| Decision Date |
Feb 11, 1992 |
| Hearing Date |
|
| Decision |
The petition was allowed, declaring that the demand for sales tax on the petitioner's consignments based on the S.R.O. dated 26-6-1988 was without lawful authority and of no legal effect. The court held that the petitioner had acquired vested rights to import goods without the payment of sales tax before the issuance of the subsequent notification that withdrew the exemption. The court emphasized that the Customs Act's Section 31-A could not be invoked to protect the levy of sales tax, as it pertains to customs duty. Consequently, the guarantee furnished by the petitioner was discharged. |
| Summary |
The case revolves around a constitutional petition challenging the demand for sales tax by the Customs Authorities on imported goods. The petitioner, having placed orders and obtained import licenses prior to the withdrawal of the sales tax exemption, argued that their vested rights should be upheld. The Sindh High Court ruled in favor of the petitioner, stating that the subsequent notification that removed the exemption did not affect the rights acquired prior to its issuance. This case highlights the legal principles surrounding vested rights, sales tax exemptions, and the application of the Customs Act in relation to sales tax. The decision reinforces the notion that tax liabilities cannot be retroactively imposed on transactions that were finalized under previous regulations. This case is significant for importers seeking to understand their rights concerning tax exemptions and the legal recourse available against unjust tax demands. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
Nasir Aslam Zahid,
Mukhtar Ahmad Junejo
|
| Lawyers |
Muhammad Nasim,
Muhammad Farogh Nasim,
Ikram Ahmad Ansari,
S. M. Sayedain
|
| Petitioners |
Muhammad Abdullah
|
| Respondents |
Government of Pakistan
|
| Citations |
1993 SLD 368,
(1993) 67 TAX 217
|
| Other Citations |
Crescent Pak. Industries (Pvt.) Ltd. v. Central Board of Revenue (1991) 61 Tax 85,
Yaseen Sons v. Collector of Customs (1990) C.L.C. 1979,
Al-samraz Enterprises v. Federation of Pakistan (1986 SCMR 1917),
Molasses Trading and Export (Pvt.) Ltd. v. Federation of Pakistan (Civil Appeals No. 915-K to 918-K of 1990),
Federation of Pakistan v. M/s Mehmood Sons (Pvt.) Ltd. (Civil Appeals 187-K/90 to 191-K/90)
|
| Laws Involved |
Customs Act, 1969,
Sales Tax Act, (III of 1951)
|
| Sections |
31A,
3(5)
|