COLLECTOR OF SALES TAX VS CYNAMID PAKISTAN LTD, 2008 PTD-KARACHI-HIGH-COURT-SINDH 318 (2007)

Sales Tax Act (VII of 1990)---

----Ss.7 & 47---Reference to High Court---Entitlement to claim input tax adjustment---Questions which had been proposed by the Collector of Sales Tax and Federal Excise for opinion of the High Court, were; that whether under facts and circumstances of the case, Customs, Excise and Sales Tax Appellate Tribunal was justified in holding that "assessee would be entitled to claim input adjustment in accordance with law" without mentioning specifically the provisions of law either under S.7 or S.59 of Sales Tax Act, 1990; and that whether or not the Appellate Tribunal was justified in ignoring the specific directions of the High Court regarding fresh findings on the issue of entitlement of input tax adjustment under S.7 of Sales Tax Act, 1990---Important aspect of the case regarding the applicability or otherwise of S.7 of Sales Tax Act, 1990 was clearly attended to and answered by the Tribunal in favour of the assessee---Order of the Tribunal was not to be read independently; but w to be read as a whole which had clarified the issue---Both questions being misconceived, appeal was dismissed.

Syed Mohsin Imam for Applicant.

Aziz A. Shaikh for Respondents.

ORDER

By this reference application, under section 47 of the Sales Tax Act, 1990, following questions have been proposed by the Collector of Sales Tax and Federal Excise for the opinion of this Court:-

"(1) Whether under facts and circumstances of the case the learned Customs, Excise and Sales Tax Appellate Tribunal was justified in holding that "the appellant will be entitled to claim input tax adjustment in accordance with law" without mentioning specifically the provisions of law either under section 7 or section 59?.

(2) Whether or not the Appellate Tribunal was justified in ignoring the specific directions of the Hon'ble High Court of Sindh given vide judgment, dated 5-4-2006 regarding fresh finding on the issue of entitlement of input tax adjustment under section 7 of the Act?"

2. We have heard the learned counsel and perused the impugned order dated 19-8-2006, so also the order of this Court, dated 5-4-2006 passed in Special Sales Tax Appeal No.534 of 2004. From the plain reading of the contents of Para.5 of the order passed by the Tribunal, it is evident that the important aspect of the case regarding the applicability or otherwise of section 7 of the Sales Tax Act, 1990, for which the case was remanded to the Tribunal for adjudication, was clearly attended to and answered by the Tribunal in favour of the respondent. The concluding paragraph of the order of the Tribunal, dated 19-8-2006 is not to be read independently, but said order is to be read as a whole, which clarifies the issue.

3. This being the position, both the questions are misconceived, and therefore, this appeal is dismissed.

H.B.T./C-19/KAppeal dismissed.