| Case ID |
d70427b4-79de-4ddc-8758-137715bf1357 |
| Body |
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| Case Number |
D-350 of 1987 |
| Decision Date |
Jan 18, 1989 |
| Hearing Date |
Jan 18, 1989 |
| Decision |
The Sindh High Court declared that the demand for sales tax on television sets manufactured by the petitioner during the period from 25-6-1980 to 14-6-1981 was illegal and of no legal effect. The court found that the sales tax should have been assessed under Section 2(16)(ii) of the Sales Tax Act, as the Central Board of Revenue's Circular No.2 of 1982 had directed that sales tax on goods produced in Pakistan should be collected as if it were excise duty. The judgment emphasized that the determination of sale price under Section 2(16)(i) for the assessment of sales tax during the specified period was not in accordance with the law, thus invalidating the tax demand. |
| Summary |
This case revolves around the interpretation of the Central Excise and Salt Act, (I of 1944) regarding the assessment of sales tax on television sets manufactured by Messrs S.N.H. Industries Ltd. The Sindh High Court ruled in favor of the petitioner, stating that the sales tax should have been calculated on the basis of Section 2(16)(ii) rather than Section 2(16)(i). The court highlighted that the relevant Circular No.2 of 1982 had established the guidelines for tax assessment, and any deviation from these guidelines rendered the tax demand illegal. The case underscores the importance of adhering to statutory provisions and administrative directives in tax assessments, particularly in the manufacturing sector. The ruling provides clarity on the applicability of sales tax regulations and the exemptions available under specific conditions, contributing significantly to legal precedents in fiscal matters in Pakistan. Keywords: Central Excise, Sales Tax, Sindh High Court, Tax Assessment, Legal Precedents, Manufacturing Sector, Fiscal Regulations. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
SAEEDUZZAMAN SIDDIQUI,
ARID ALLAHDINO G. MEMON
|
| Lawyers |
J.H. Rahimtoola,
Rashid Akhund
|
| Petitioners |
Messrs S.N.H. INDUSTRIES LTD.
|
| Respondents |
GOVERNMENT OF PAKISTAN through the Secretary, Ministry of Finance, Islamabad and 3 others
|
| Citations |
1989 SLD 253,
1989 MLD 1821
|
| Other Citations |
Not available
|
| Laws Involved |
Central Excise and Salt Act, (I of 1944)
|
| Sections |
2,
2(16)(ii),
3,
First Schedule
|