| Case ID |
ed688358-2779-48bb-98b5-61f185846eaa |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Lahore High Court ruled that the levy of octroi duty on goods imported by Gulshan Fabrics (Pvt.) Ltd. was justified as the goods were deemed to be used within the limits of the Town Committee, Kot Abdul Malik. The court clarified that the term 'use' is distinct from 'consumption' and that goods brought into the mills for processing are subject to duty even if they are not sold or consumed. The court emphasized the interpretation of statutes stating that each term must be given its meaning, leading to the conclusion that the octroi duty was applicable to the goods imported for dyeing and bleaching processes. |
| Summary |
In the case between Gulshan Fabrics (Pvt.) Ltd. and the Town Committee, Kot Abdul Malik, the Lahore High Court addressed the legality of levying octroi duty on goods imported for processing. The court examined the definitions of 'use' and 'consumption' under the Punjab Local Government Ordinance and the Punjab Local Council Octroi Rules. It was determined that octroi duty applies to goods imported for use within the local limits of a municipal council, even if those goods are not sold or consumed. This ruling highlights the importance of statutory interpretation and the distinct nature of the terms involved, which could impact other similar cases regarding local taxation and import duties. The case sets a precedent for how local councils can apply taxes on goods entering their jurisdiction and clarifies the legal obligations of businesses regarding import duties. |
| Court |
Lahore High Court
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| Entities Involved |
GULSHAN FABRICS (PVT.) LTD.,
TOWN COMMITTEE, KOT ABDUL MALIK
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| Judges |
MALIK MUHAMMAD QAYYUM, J
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| Lawyers |
Ch. Hamid-ud-Din,
Ali Ahmad Awan,
Irfan Qadif, AddlA.G.
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| Petitioners |
ANOTHERS,
GULSHAN FABRICS (PVT.) LTD.
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| Respondents |
ANOTHER,
TOWN COMMITTEE, KOT ABDUL MALIK
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| Citations |
1993 SLD 509 = 1993 CLC 1029
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| Other Citations |
Abdul Razaq apd another v. Sharif Khan and 6 others 1986 CLC 281,
Mst. Ashrafi and another v. Settlement Commissioner (Lands), Multan and 4 others PLD 1973 Note 59 at p.81,
Municipal Committee, Multan through its Chairman v. Burmah Shell Storage & Distributing Co. of Pakistan Ltd. and another PLD 1976 Lah. 726,
Managing Director, Pakistan Agricultural Storage and Service Corporation Ltd., Lahore and another v. Nawab Din and 2 others 1981 CLC 284,
Kh. Abdul Waheed and another v. Punjab Government and Municipal Committee, Mandi Bahauddin PLD 1978 Lah. 811,
Municipal Council; Pandhurna v. R.P. Dube and another AIR 1969 Madh. Pra. 1,
M/s. Anwar Khan Mahboob Co. v The State of Bombay (now Maharashtra) and others AIR 1961 SC 213
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| Laws Involved |
Punjab Local Government Ordinance (VI of 1979),
Punjab Local Council Octroi Rules, 1964
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| Sections |
137,
35,
83
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