| Case ID |
424f2151-63de-4f19-993f-ac255ce7e4dc |
| Body |
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| Case Number |
Application No. 136 of 1972 |
| Decision Date |
Jul 01, 1980 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that the Dockyard and Engineering Works Ltd., as the successor in interest of the Government, could not be held liable for sales tax during the period when the business was owned and managed by the Government. The Court found that since the Government could not be assessed for sales tax during the relevant assessment years, the successor company also could not be held liable. The Tribunal's decision was upheld, affirming that the assessment of sales tax could only be made against the actual producer or manufacturer, which in this case was the Government of East Pakistan. |
| Summary |
The case revolves around the interpretation of the Sales Tax Act, particularly Section 10, which deals with the liability of firms taken over by the Government. The Supreme Court of Bangladesh addressed whether the Dockyard and Engineering Works Ltd. could be held responsible for sales tax during the years when the business was owned by the Government and managed by a statutory corporation. The Court ruled that since the Government, as the original owner, could not be assessed for sales tax, its successor also could not be liable. This decision underscores the importance of determining the actual entity responsible for tax obligations and clarifies that liability cannot be transferred to a successor if the predecessor was exempt from such obligations. The case highlights the legal principles surrounding government ownership and corporate succession in the context of tax law. |
| Court |
Supreme Court of Bangladesh
|
| Entities Involved |
Pakistan Industrial Development Corporation,
Dockyard and Engineering Works Ltd.,
Government of East Pakistan
|
| Judges |
SYED MUHAMMAD HUSSAIN,
SULTAN HUSSAIN KHAN
|
| Lawyers |
Habibul Islam Bhuiyan,
S. M. Hossain,
A. N. Mahmudur Rahman
|
| Petitioners |
COMMISSIONER OF SALES TAX, DACCA ZONE, DACCA
|
| Respondents |
DOCKYARD AND ENGINEERING WORKS LTD., NARAYANGANJ
|
| Citations |
1982 SLD 109,
1982 PTD 51,
(1982) 45 TAX 39
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act
|
| Sections |
10
|