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TUFAIL CHEMICAL AND SURFACTANTS (PRIVATE) LIMITED vs PROVINCE OF SINDH through Secretary Ministry of Law S — 2024 PTD 793 KARACHI-HIGH-COURT-SINDH

Case information

Citation
2024 PTD 793 KARACHI-HIGH-COURT-SINDH
Court
Sindh High Court
Year
2024
Reporter
PTD
Parties
TUFAIL CHEMICAL AND SURFACTANTS (PRIVATE) LIMITED vs PROVINCE OF SINDH through Secretary Ministry of Law S
Subject matter
Tax & Customs
Provisions referred to
S. 8---C; Sales Tax Act; Services Act

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

Judgment text as reported

TUFAIL CHEMICAL AND SURFACTANTS (PRIVATE) LIMITED VS PROVINCE OF SINDH through Secretary Ministry of Law S.8---Constitution of Pakistan, Fourth Schedule, Entry No. 49---Constitutional petition---Toll manufacturing---Recovery of sales tax---Jurisdiction---Petitioner companies were aggrieved of dispute between Sindh Government and Federal Government with regard to collection of sales tax on toll manufacturing---Validity---Post 18th Amendment to the Constitution in a number of cases of like nature, it was the taxpayer who had been dragged into unnecessary and protracted litigation and was subjected to double taxation by the Federation as well as by the Province, in addition to a very heavy burden on the Courts by way of constitutional petitions which could have been better resolved amicably and with consultation between the Federation and the Province---During the period under dispute, the tax which had already been paid by petitioners to the Federation through Federal Board of Revenue, in respect of toll manufacturing, that was their final discharge of liability in respect of sales tax (either under Sales Tax Act, 1990 or under Sindh Sales Tax on Services Act, 2011) they were not obliged to pay any further sales tax on such activity---Any proceedings initiated by the Province of Sindh under Sindh Sales Tax on Services Act, 2011, to such extent stood abated / disposed of in such terms---High Court advised that if the Province of Sindh intended to get any share out of sales tax already collected by Federal Board of Revenue under such head, it could approach Federation for its amicable settlement---Constitutional petition was disposed of accordingly.

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