COMMISSIONER INLAND REVENUE, MULTAN vs ACRO SPINNING AND WEAVING MILLS LTD — 2021 PTD 1355 SUPREME-COURT

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

COMMISSIONER INLAND REVENUE, MULTAN VS ACRO SPINNING AND WEAVING MILLS LTD., MULTAN Ss. 3(1), 3(1a) & 4 [as they existed before the Finance act, 2017]---SRO No. 1125(I)/2011 dated 31-12-2011 (as amended vide SRO No. 491(I)/2016 dated 30-06-2016)---Taxable supplies to be charged at zero percent---Scope---Taxable supplies made by taxpayer to persons not registered under the Sales Tax act, 1990---Certain erroneous observations regarding the Sales Tax act, 1990 recorded by the High Court in Paragraphs 5 and 10 of the judgment reported as MKB Spinning Mills (Pvt.) Ltd. v. Federation of Pakistan and others 2018 PTD 2364 highlighted by the Supreme Court. Citation Name: 2021 PTD 1355 SUPREME-COURTBookmark this Case COMMISSIONER INLAND REVENUE, MULTAN VS ACRO SPINNING AND WEAVING MILLS LTD., MULTAN Ss. 3(1), 3(1a) & 4 [as they existed before the Finance act, 2017]---SRO No. 1125(I)/2011 dated 31-12-2011 (as amended vide SRO No. 491(I)/2016 dated 30-06-2016)---Taxable supplies to be charged at zero percent---Scope---Taxable supplies made by taxpayer to persons not registered under the Sales Tax act, 1990---Held, that provision of S. 4 of the Sales Tax act, 1990 dealing with zero rating of taxable supplies was an overriding provision on account of the non-obstante clause by which it started---Provisions of S. 3(1a) of the Sales Tax act, 1990 pertaining to further tax were subservient to the effect of zero rating---Consequently, zero rated goods were not liable to any of the provisions under S. 3 of the act---SRO No. 1125(I)/2011 dated 31.12.2011 (as amended vide SRO No. 491(I)/2016 dated 30-06-2016 provided, in sub-entry (iii) of entry No. 1 of Table II thereof that taxable supplies made by persons doing business in five specified sectors to "registered or unregistered persons" would be taxed at zero percent---SRO No. 1125 applied, as it stated on the face of it, not only to supplies made to registered persons (who would otherwise be covered by subsection (1) of S. 3 of the Sales Tax act, 1990) but also those made to unregistered persons, who would be covered by both subsections (1) & (1a) of S. 3.

COMMISSIONER INLAND REVENUE, MULTAN vs ACRO SPINNING AND WEAVING MILLS LTD — 2021 PTD 1355 SUPREME-COURT

Case information

Judgment text as reported

Other judgments reported in 2021 PTD