| Case ID |
e0a6e18b-114a-4c9c-a192-2f2b01bee836 |
| Body |
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| Case Number |
Sales Tax Case No. 46 of 1973 |
| Decision Date |
Jan 23, 1984 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled that the sales made by the applicant, Arag Industries Ltd., to four licensed manufacturers were entitled to exemption under Section 4 of the Sales Tax Act, 1951. The court emphasized that the licenses of the manufacturers were valid at the time of sale, despite their subsequent cancellation. The court referenced previous case law to support the decision, affirming that the criteria for exemption were met. |
| Summary |
The case revolves around the interpretation of Section 4 of the Sales Tax Act, 1951, which provides exemptions for sales made to licensed manufacturers. The applicant, Arag Industries Ltd., contested a decision by the Income Tax Tribunal that denied them exemption despite selling cotton yarn to manufacturers who held valid licenses at the time of sale. The Sindh High Court analyzed the facts and previous case law, concluding that the exemption was rightly applicable. This case highlights the importance of understanding statutory provisions and the impact of license validity on tax exemptions. Keywords: Sales Tax Act, exemption, licensed manufacturers, Sindh High Court, tax law. |
| Court |
Sindh High Court
|
| Entities Involved |
Arag Industries Ltd.,
The Commissioner of Sales Tax (West), Karachi
|
| Judges |
NASIR ASLAM ZAHID,
ALLY MADAD SHAH
|
| Lawyers |
Mansoor Ahmad Khan,
Nasrullah Awan
|
| Petitioners |
Messrs ARAG INDUSTRIES Ltd.
|
| Respondents |
another,
THE COMMISSIONER OF SALES TAX (WEST), KARACHI
|
| Citations |
1985 SLD 164,
1985 PTD 190
|
| Other Citations |
1983 P T D 44
|
| Laws Involved |
Sales Tax Act
|
| Sections |
4
|