2358/2015 Const. P. ORI-TECH, OILS PRIVATE LIMITED (Petitioner) V/S The Chief Commissioner Inland Revenue, Regional Tax Office-I, Karachi (Respondent)
Sindh High Court
Bench: Hon'ble Mr. Justice Arshad Hussain Khan(Author)
Order Date: 08-MAY-17
The petitioner through the present constitutional petition sought declaration that the petitioner is engaged in the manufacturing process through Toll Manufacturer and thus eligible to be registered as Manufacturer with the Tax Authorities. It was considered that the petitioner being manufacturer of its products owns the proprietary rights over its brand name and fixes the retail price and sell the finished product, hence the petitioner is engaged in the taxable supply being manufacturer. Provisions and definition clauses of the Sales Tax Act 1990, Federal Excise Act 2005 & Sales Tax Registration Rules 2006 were examined. Section 2 (17) was examined and it was considered that manufacturer is a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him and shall include a person any person, firm or company which owns, holds, claims or uses any patent, proprietary, or other right to goods being manufactured, whether in his or its name, or on his or its behalf, as the case may be, whether or not such person, firm or company sells, distributes, consigns or otherwise disposes of the goods. It was also observed that there appears no provision in sales tax act, which could exclude a person who does not possess its own facility of manufacturing and get his products manufactured from toll manufacturing from claiming himself as manufacturer. The Federal Excise General Order No.2 of 2008 dated 06.10.2008, was taken into consideration and it was observed that both vendor and the principal fall in purview of the definition of manufacturer. Hence, it was decided that the petitioner is engaged in the manufacturing of its products through Toll manufacturing arrangement and thus eligible to be registered as Manufacturer with Tax authority. The Petition was allowed.Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
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