Sales Tax Instructions

Sales Tax Instructions, 2009
(iii)
(iv)
the judgement may also be produced as ―precedent‖ in other similar
pending cases (relating to further tax) and such pending cases may be got
decided from the Hon. High Courts on the basis of this precedent by
moving an application for early hearing.
a copy of the judgement may be circulated amongst all Law
Officers/Auditors/Senior Auditors/Assistant Collector/Deputy
Collector/Additional Collector/Cost Accountants for information.
[Issued by the CBR, Islamabad under the signature of Mr. Zulfiqar A. Kazmi, Secretary
(STJ) addressed to all the Collectors of Sales Tax/Mirpur (AJ&K). Copy, alongwith judgement, to
Collector (Appeals), Karachi/Lahore/ Rawalpindi/Departmental Representative/Appellate
Tribunal (Customs, CE & ST) Karachi/Lahore/Islamabad. Secretary (STP), Secretary (STM),
Secretary (ST-Int.Audit), Secretary (ST-Ext.Audit), Secretary (ST.Edu.), CBR.]
ENCLOSURE
JUDGEMENT SHEET
IN THE LAHORE HIGH COURT MULTAN BENCH MULTAN
JUDICIAL DEPARTMENT
W.P No. 25915 of 1998
JUDGEMENT
OF HEARING 14.9.1999, 15.9.1999 AND 16.9.1999 .
APPELLANT BY (M/s Riaz bottlers (Pvt) Ltd) By Mr. Ali Sibtain Fazli, Advocate
RESPONDENT BY (Federation of Pakistan) By Kh. Saeed-uz-Zafar, DAG
No2 to 4 (C.B.Reve.) By Mr. A. Karim Malik, Advocate
NASIM SIKANDAR, J.- This judgement will dispose of Writ Petitions No. 25915 and
19045 of 1998, 803, 2076, 5313, 7776, 12312, 12313, 12405, 12867, 13520, 13521, 13841, 14425,
14426, 14439, 14609, 14619, 14655, 14656, 14657, 14804, 14805, 14806, 14807, 14808, 14809,
14810, 14812, 14813, 14887, 14888, 14889, 14961, 14962, 14963, 14971, 14972, 14973, 15035,
15048, 15049, 15050, 15071, 15072, 15073, 15074, 15085, 15114, 15179, 15180, 15220, 15240,
15497, 15498, 15675, 15747, 15911 and 15988 of 1999
2. The Sales Tax Act, 1990 was amended by Finance Act, 1998, inter ali, to add sub-section
(1-A) to section 3 which after the amendment read:-
1-A) Where taxable supplies are made in Pakistan to a person other than a registered
person there shall be charged, levied and paid a further tax at the rate of one
percent of the value in addition to the rate specified in sub-section (1).
Provided that the aforesaid one percent further tax shall not be charged, levied
and paid if the said taxable supplies are made:-
1) by a person registered as a retailer; or
2) by any registered person to a person whose income is not liable to tax under the
Income Tax Ordinance, 1979 (XXXI of 1979) but has deducted income tax at
source under sub-section (4) of section 50 of the said Ordinance.‖
3. In the immediate next year by Finance Act, 1999 the above-mentioned sub-section was
further amended to enhance the rate from one percent to 3 percent and to include a reference to
clause (c) of sub-section (2) and sub-sections (4) and (5) of section 3 of the Act. Accordingly the
first part of the newly inserted sub-section now reads as under:-