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MATRACON PAKISTAN (PRIVATE) LIMITED vs APPELLATE TRIBUNAL FOR SALES TAX ON SERVICES, KHYBER PAKHTUNKHWA through Chairman, Peshawar Arts — 2026 PTD 854 PESHAWAR-HIGH-COURT

Case information

Citation
2026 PTD 854 PESHAWAR-HIGH-COURT
Court
Peshawar High Court
Year
2026
Reporter
PTD
Parties
MATRACON PAKISTAN (PRIVATE) LIMITED vs APPELLATE TRIBUNAL FOR SALES TAX ON SERVICES, KHYBER PAKHTUNKHWA through Chairman, Peshawar Arts
Subject matter
Tax & Customs

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

MATRACON PAKISTAN (PRIVATE) LIMITED VS APPELLATE TRIBUNAL FOR SALES TAX ON SERVICES, KHYBER PAKHTUNKHWA through Chairman, Peshawar Arts.142 & 260 and Fourth Sched., Federal Legislative List, Entry No.49---Works/construction contract---Meaning and scope---Sale of goods or provision of services---Materials used in execution of contract---Effect---Pivotal issue was whether a works contract falls within ambit of "sale of any goods", thereby excluding it from legislative domain of the Province to levy tax thereon---Held: Term "goods" in Art.260 includes all materials, commodities and articles---The expression "sale" has not been defined in the Constitution and is to be given its ordinary and natural meaning---Construction or works contract, as understood in the relevant industry and trade, essentially comprises provision of labour and services as well as use of materials, goods and equipment---Such materials, whether wholly or partially finished and intended for execution of the contract, cannot be regarded as appropriated to the contract, nor does their title pass to the other party, unless and until they are affixed, consumed or utilized in completion of works---Mere use or provision of materials in the course of a works contract does not constitute a "sale" of such materials and consequently falls outside ambit of Entry No.49 of the Fourth Schedule to the Constitution---Such contract, being in the nature of services, falls within exception to Entry No.49 and lies within exclusive domain of Provincial Legislature under Art.142(c) of the Constitution to levy tax on construction works.

Other judgments reported in 2026 PTD

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