| Case ID |
f5a7b122-2a5a-4cac-b637-238dd8f8d8c4 |
| Body |
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| Case Number |
Income Tax Reference No. 26 of 1977 |
| Decision Date |
May 06, 1991 |
| Hearing Date |
|
| Decision |
The court ruled in favor of the department, affirming that the soft cotton waste sold by the assessee was a manufactured article subject to tax under Section 3 of the Sales Tax Act, 1951. The tribunal's decision to disallow the exemption claimed by the petitioner was upheld. The court emphasized that the new arguments presented by the petitioner could not be considered as they were not part of the original reference and had not been raised in a separate petition. Therefore, the question referred to the court was answered in the affirmative, with no order as to costs. |
| Summary |
In the case of SERVICE INDUSTRIES LTD vs. COMMISSIONER OF SALES TAX, the Lahore High Court addressed the issue of sales tax exemption on the sale of cotton waste. The petitioner, SERVICE INDUSTRIES LTD, claimed an exemption under Notification No. 9 dated 27-6-1951 for sales amounting to Rs. 1,29,305/- during the charge year 1969-70. However, the Sales Tax Officer disallowed the claim, leading to an appeal that was also dismissed. The case was referred to the Lahore High Court by the Income Tax Appellate Tribunal, questioning whether the Tribunal was correct in its ruling that the cotton waste constituted a manufactured article subject to sales tax. The court, after reviewing precedents, concluded that the Tribunal's decision was correct and affirmed the position of the department. This case highlights the complexities of tax law, particularly regarding the definitions and classifications of goods under the Sales Tax Act. Key legal principles regarding exemptions and the interpretation of legislative provisions were examined, making this case significant in the realm of sales tax jurisprudence. |
| Court |
Lahore High Court
|
| Entities Involved |
COMMISSIONER OF SALES TAX,
SERVICE INDUSTRIES LTD
|
| Judges |
M. Mahboob Ahmad, C.J.,
Malik Muhammad Qayyum, J
|
| Lawyers |
Sh. Abdul Nasir, Advocate,
Muhammad Ilyas Khan, Advocate
|
| Petitioners |
SERVICE INDUSTRIES LTD
|
| Respondents |
COMMISSIONER OF SALES TAX
|
| Citations |
1992 SLD 452,
(1992) 65 TAX 209
|
| Other Citations |
Noorani Cotton corporation v. S.T.O. A-Ward, Lyallpur (1965) 11 TAX 184 (S.C. Pak)=(PLD 1965 SC 161),
Colony Textile Mills Ltd. v. C.S.T. Lahore Zone Lahore (1980) 42 Tax 114 (S.C. Pak.)
|
| Laws Involved |
Sales Tax Act, 1951
|
| Sections |
17(1),
2(II),
3
|