| Case ID |
d3fd86a1-baec-4276-a5f4-fd743ec3f56f |
| Body |
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| Case Number |
Writ Petition No.17378 of 1998 and Customs Appeal |
| Decision Date |
Jan 09, 2002 |
| Hearing Date |
Oct 16, 2001 |
| Decision |
The Lahore High Court dismissed the writ petition filed by Pioneer Cement Limited against the Assistant Collector Sales Tax, Sargodha. The Court held that the petitioner had alternate remedies available before the Revenue hierarchy and that the constitutional petition was not competent. The Court emphasized the importance of adhering to statutory forums and decried the tendency to bypass them. The amendments proposed by the petitioner in the constitutional petition were deemed unauthorized as they were not permitted by the Court. The Court reaffirmed that sales tax on limestone and clay was lawful under the Sales Tax Act, 1990, and maintained that the petitioner had not provided sufficient grounds to declare the tax charge as ultra vires the Constitution. |
| Summary |
In this significant case before the Lahore High Court, Pioneer Cement Limited challenged the imposition of sales tax on limestone and clay, arguing that such charges were ultra vires the Constitution of Pakistan. The case revolved around the interpretation of the Sales Tax Act, 1990 and the constitutional provisions governing taxation. The court highlighted the importance of following due process in tax-related matters and the necessity for petitioners to utilize available statutory remedies before approaching the High Court. The judgment underscored the court's discretion in allowing amendments to pleadings, emphasizing the principle of good faith and the avoidance of multiplicity of litigation. The Court ultimately upheld the authority's decision to impose sales tax, establishing a precedent for future tax-related disputes involving mineral resources. The outcome provides clarity regarding the legal framework governing sales tax in Pakistan, particularly in relation to the extraction and use of minerals in manufacturing processes. |
| Court |
Lahore High Court
|
| Entities Involved |
Pioneer Cement Limited,
Assistant Collector Sales Tax, Sargodha
|
| Judges |
Naseem Sikandar,
Mansoor Ahmad
|
| Lawyers |
M. M. Akram for Petitioner,
A. Karim Malik for the Revenue,
Kh. Saeedu-uz-Zafar, Dy. A.G. for Respondent
|
| Petitioners |
Pioneer Cement Limited, Jauharabad, District Khushab
|
| Respondents |
Others,
Assistant Collector Sales Tax, Sargodha
|
| Citations |
2002 SLD 578,
2002 PTD 920,
(2002) 85 TAX 341
|
| Other Citations |
Haji Suleman Ali Muhammad v. Ahmad Ali and others PLD 1982 Kar. 111,
Mistri Muhammad Hassan v. Haji Said Muhammad and others 1986 CLC 1241,
Al-Haram Builder v. Federation of Pakistan and others 1993 SCMR 29
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973,
Civil Procedure Code (V of 1908)
|
| Sections |
3,
13,
199,
Fourth Schedule,
O.VI, R.17
|