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Sales Tax Reference No. 44 of 1972 decided on 10th November 1986.
---S. 3(1)(e) [as introduced by Finance Act (XII of 1967)]- -Retrospectivity--Clause (e) of S. 3(1), Sales Tax Act, 1951 as introduced by Finance Act, 1967 is not retrospective in its application.
S. Muhammad Din & Sons Ltd. Lahore v. The Commissioner of Sales Tax, Lahore (Tax Reference No. 165-71 (93-71); Commissioner of Sales Tax, North Zone, Lahore v. H. - Muhammad Hussain & Co. P L D 1974 Note 21 at p. 57 and Metalex Corporation Ltd. v . Commissioner of Income-tax S T R No. 103 of 1973 fol.
Commissioner of Income-tax v. A & B Food Industries Ltd. 1984 P T D 381 distinguished.
Muhammad Shafi for Applicant.
Nasrullah Awan for Respondent.
Date of hearing: 10th November, 1986.
.--The question involved in this case is about the retrospectivity of clause (e) of subsection (1) of section 3 of the Sales Tax introduced in section 3 by the Finance Act, 1967. The Tribunal, by its decision dated 26-7-1971, was of the view that this amendment in section 3 (1) (c) was retrospective in operation. We have heard Mr. Muhammad Shafi, learned counsel for the applicant and Mr. Nasrullah Awan, learned counsel for the respondent/ Department.
In support of the contention on behalf of applicant assessee that the aforesaid provision is not retrospective in nature, learned counsel for the applicant has referred to an unreported DB decision of the Lahore High Court in the case of S. Muhammad Din & Sons Ltd. Lahore v. The Commissioner of Sales Tax, Lahore (Tax Reference No.165-71 (93-71) dated 11-5-1973. By this decision the Lahore High Court held that section 3(1) (e) of the Sales Tax Act introduced by the Finance Act, 1967 is not retrospective. This unreported decision referred to an earlier decision of the Lahore High Court in the case of Commissioner of Sales Tax, North Zone, Lahore v. H. Muhammad Hussain & Co. P L D 1974 Note 21 at page 57. In this reported decision also the same view is taken that is section 3(1)(e) of the Sales Tax Act introduced in Finance Act, 1967 is retrospective in nature.
Mr. Nasrullah Awan, learned counsel for the department, however, referred to a decision of this Court in the case of Commissioner of Income Tax v. A & B Food Industries Ltd. 1984 P T D 387. We have gone through this judgment and we find that this is not relevant and it has not held that section 3(1)(e) of the Sales Tax Act is or is not retrospective in nature. The specific point involved in the present case was not involved in 1984 P T D 381.
Then this Court in the judgment in the case of Metalex Corporation Ltd. v. Commissioner of Income-tax (STR No.103/73) decided on 22-12-1983 has answered this question in the same way as has been done by the Lahore High Court in the aforesaid two decisions. In this decision of this Court dated 22-12-1983 it has been held that clause (e) of section 3(1) of the Sales Tax Act introduced by the Finance Act, 1967, is not retrospective in application. We have not been persuaded to take a different view than that has already been taken by the Lahore High Court in the aforesaid two decisions and by another bench of this Court in STR No.103/73.
3. In the circumstances, we answer the question that whether on the facts and in the circumstances of this case this Tribunal was justified in arriving at the finding that the amendment by inserting clause (e) in section 3(1) of the Sales Tax Act has retrospective effect, in the negative, SIC No.44 of 1972 stands disposed of.
M.B.A./5134/K Reference answered in the negative.
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