| Case ID |
47ce9a80-8ddb-41e0-a150-1cca095bd26d |
| Body |
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| Case Number |
Sales Tax Appeal No. 1 of 1997 |
| Decision Date |
Mar 24, 1998 |
| Hearing Date |
Mar 12, 1998 |
| Decision |
The appeal was dismissed as the court found that the appellant, Bolan Chemicals (Pvt.) Limited, was not entitled to the exemption under the Sales Tax Act, 1990, due to the expiration of the exemption period on June 30, 1996. The court held that the interpretation of the notifications did not support the claim that the exemption could be extended based on the date of production commencement. The court emphasized that the terms of the notifications must be adhered to, and the exemption period was explicitly defined as eight years starting from July 1, 1988, regardless of when the industry began production. The final decision confirmed the validity of the tax demand from the respondents, affirming the lower court's rulings. |
| Summary |
This case involves Bolan Chemicals (Pvt.) Limited's appeal against tax demands under the Sales Tax Act, 1990. The core issue was the interpretation of tax exemption notifications regarding industries established between July 1, 1988, and June 30, 1991. The court ruled that the exemption period had expired, and the appellant's arguments for extending the exemption based on the production start date were rejected. The judgment underscores the importance of adhering to explicit statutory language in tax law, emphasizing that beneficial interpretations do not extend beyond the legislated time frames. This case highlights the criticality of understanding sales tax regulations, particularly for newly established industries, and the implications of statutory interpretations in tax compliance. |
| Court |
Quetta High Court
|
| Entities Involved |
BOLAN CHEMICALS (PVT.) LIMITED,
COLLECTORATE OF SALES TAX, HUB, BALOCHISTAN
|
| Judges |
IFTIKHAR MUHAMMAD CHAUDHARY,
RAJA FAYYAZ AHMAD
|
| Lawyers |
Haider Ali Pirzada,
Sultan Ahmed Sheikh,
M. S. Rakhshani
|
| Petitioners |
BOLAN CHEMICALS (PVT.) LIMITED
|
| Respondents |
2 others,
COLLECTOR, SALES TAX, COLLECTORATE OF SALES TAX, HUB, BALOCHISTAN
|
| Citations |
1998 SLD 571,
1998 PTD 3064,
(1998) 78 TAX 176
|
| Other Citations |
The Broach District Cooperative Cotton Sales Ginning and Pressing society Ltd. v. The Commissioner of Income-tax, Ahmedabad AIR 1989 SC 1493,
Bajaj Tempo Ltd., Bombay v. Commissioner of Income-tax, Bombay City III, Bombay AIR 1992 SC 1622,
Commissioner of Sales Tax v. Messrs Zelid Ltd., Karachi PLD 1967 Kar. 341,
Messrs Tank Steel and Re-Rolling Mills (Pvt.) Ltd., Dera Ismail Khan and others v. Federation of Pakistan and others PLD 1996 SC 77,
Bashir Ahmad v. Member (Colonies), Board of Revenue, Punjab, Lahore and 2 others PLD 1997 SC 294,
Shahid Nabi Malik and another v. Chief Election Commissioner, Islamabad and 7 others PLD 1997 SC 32,
Muhammad Hussain Patel v. Habib Wali Muhammad etc. PLD 1981 SC 1,
Naveed Textile Mills Ltd. v. Assistant Collector (Appraising), Custom House, Karachi and others' PLD 1985 SC 92,
Rehman Corporation, Hyderabad v. The Income Tax Officer, Mirpurkhas and another 1985 PTD 787,
Orient Straw Board and Paper Mills Limited, Karachi v. Commissioner of Income tax, Hyderabad 1992 PTD 1369,
Western India Vegetable Products Ltd. v. Commissioner of Income-tax, Bombay City AIR 1955 Born. 13,
Commissioner of Wealth Tax, Madras v. Ramaraju Surgical Cotton Mills Ltd. AIR 1967 SC 509,
Pakistan Tobacco Co. Ltd. v. Pakistan through the Secretary, Ministry of Finance, Islamabad and 4 others 1991 PTD 359,
Flying Kraft Paper Mills (Pvt.) Ltd. v. Central Board of Revenue, Islamabad and 2 others 1997 SCMR 1874,
Haji Qadir Bux and others v. Government of Sindh and others 1982 SCMR 582,
Noori Trading Corporation PTC Limited and others v. Federation of Pakistan through the Ministry of Finance, Islamabad and 3 others PLD 1989 Quetta 74,
Nishat Tek Limited, Lahore v. The Federation of Pakistan through Secretary, Education, Islamabad and 3 others PLD 1994 Lah. 347
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
33,
33(7),
47
|