| Case ID |
67ab8b9e-fb16-4c2a-94b9-177a01f41a58 |
| Body |
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| Case Number |
Federal Excise Reference Application No.242 of 200 |
| Decision Date |
Jan 19, 2010 |
| Hearing Date |
Nov 25, 2009 |
| Decision |
The Sindh High Court, in the case of Federal Excise Reference Application No.242 of 2006, remanded the case back to the Customs, Excise, and Sales Tax Appellate Tribunal, Karachi. The court directed the Tribunal to examine the facts in light of the findings discussed in the judgment regarding the classification of thinners under the Federal Excise Act. The court emphasized the strict interpretation of tax exemptions and the burden of proof resting on the claimant to demonstrate eligibility for exemptions. The decision highlighted the importance of adhering to specified legal interpretations in the context of fiscal statutes. |
| Summary |
In the case of Federal Excise Reference Application No.242 of 2006, heard by the Sindh High Court, the primary issue revolved around the interpretation of the Federal Excise Act, 2005, specifically Section 34 concerning the classification and exemption of certain products from excise duty. The court dealt with the application of thinners used in paint manufacturing and the criteria for tax exemption under fiscal statutes. The case underscored the legal principles dictating that tax exemptions must be strictly construed, and the burden of establishing entitlement lies with the taxpayer. The judgment referenced previous cases to clarify that exemptions are not to be extended beyond their explicit wording. This case is significant in understanding the nuances of tax law and the procedural adherence required for claiming exemptions. Legal professionals and entities dealing with excise duties should be aware of the implications of this case for compliance and tax planning strategies. |
| Court |
Sindh High Court
|
| Entities Involved |
Pakistan State Oil Co. Ltd.,
Collector of Sales Tax and Federal Excise
|
| Judges |
MUSHIR ALAM,
AQEEL AHMED ABBASI
|
| Lawyers |
Syed Mohsin Imam for Applicant,
Aziz A. Shaikh for Respondent,
Khalid Javed Khan, Amicus Curiae
|
| Petitioners |
COLLECTOR OF SALES TAX and FEDERAL EXCISE, LARGE TAXPAYER UNIT, KARACHI
|
| Respondents |
Messrs PAKISTAN STATE OIL CO. LTD., KARACHI
|
| Citations |
2010 SLD 2282,
(2010) 101 TAX 323,
2010 PTD 808
|
| Other Citations |
Berger Paints Pakistan Ltd. v. Government of Pakistan 1991 CLC 1277,
Muhammad Ashraf v. The Collector of Customs (Appraisement), Karachi PLD 1991 Kar. 281,
Pakistan Machine Tool Factory (Pvt.) Ltd. v. Commissioner of Sales, Central, Zone-B, Karachi 2006 SCMR 1577,
Genertech Pakistan Ltd. v. Income Tax Appellate Tribunal of Pakistan, Lahore 2004 PTD 2255,
Messrs Army Welfare Sugar Mills Ltd. v. Federation of Pakistan 1992 SCMR 1652,
Craies on Statute Law, Seventh Edition,
Crawford on Statutory Construction,
N.A. Bindra on the Interpretation of Statutes, Third Edition,
Bisvil Spinners Ltd. v. Superintendent Central Excise and Land Customs Circle, Sheikhupura PLD 1988 SC 370,
Commissioner of Income Tax/Wealth Tax Companies Zone Faisalabad v. Rana Asif Tauseef c/o Rana Hoisery and Textile Mills Ltd. 2000 PTD 497,
Commissioner of Income Tax/Wealth Tax, Multan Zone, Multan v. Allah Yar Cotton Ginning and Pressing Mills 2000 PTD 2958
|
| Laws Involved |
Federal Excise Act, 2005
|
| Sections |
34
|