Sales Tax Act (VII of 1990)‑‑‑

‑‑‑‑S.7‑‑‑Constitution of Pakistan (1973), Art 199‑‑‑Constitutional petition‑‑‑Petitioners had questioned the imposition of Sales Tax on "wire rods" manufactured by them at the rate of 12‑1/2 % ad valorem on the ground, of being discriminatory and arbitrary as other products of iron and steel falling in the same classification were liable to fixed Sales Tax @Rs.175 per metric ton‑‑‑Validity‑‑‑Held, the product manufactured by the petitioner was liable to Sales Tax @ 175 per metric ton, nevertheless the petitioner could only seek refund of the amount already paid upon proof of the fact that the burden of tax had not passed on to the consumer before the competent authority, such exercise was to be completed within three months.

Al‑Abbas Steel (Pvt.) Ltd, v. Federation of Pakistan C. P No.13‑155 of 1993 ref.

Mansoorul Arfin for Petitioner.

Nadeem Azhar, D.A.‑G. for Respondent No. 1.

Raja Muhammad Iqbal and Abdul Saeed Khan Ghori for Respondents Nos.2 to 4.

ORDER

The petitioners have questioned the imposition of sales tax on 'wire rods' manufactured by them at the rate of 12 1/2 % ad valorum on the ground of being discriminatory and arbitrary as other product of iron and steel fallen in the same classification are liable to fixed sales tax at Rs.175 per metric ton.

The fee as to the rate of sales tax charges was not seriously contested in view of an unreported decision of a Division Bench of this Court in Al‑Abbas Steel (Pvt.) Ltd. v. Federation of Pakistan (C.P. No.D‑155 of 1993), dated 18‑3‑2003. However, relying upon the same judgment Raja Muhammad Iqbal, learned counsel for the respondents argued that the sales tax was an indirect tax and the petitioner could not claim refund unless it was proved that the burden of tax had not been passed on to the consumer. This admittedly is a question of fact, which could not appropriately be decided in these proceedings. For the foregoing reasons we would allow the petition to the extent to holding that the product manufactured by the petitioner is liable to sales tax at the rate of Rs.175 per metric ton. Nevertheless the petitioner could only seek refund of the amount already paid upon proof of the fact that the burden of tax had not passed on to the consumer before the competent authority. Let this exercise be completed within three months. The question of withdrawal of the amounts deposited in this Court may be considered upon a separate application being preferred.

M.B.A./H‑31/KOrder accordingly