COMMISSIONER OF SALES TAX, DACCA ZONE, DACCA Versus DOCKYARD & ENGINEERING WORKS LTD., NARAYANGANJ

1. SYED MUHAMMAD HUSAIN, J .‑This is an application at the instance of the Commissioner of Sales Tax, Dacca Zone under section 17(1) of the Sales Tax Act for a decision of this Court on the question whether the Tribunal rightly held that the assessee‑Company could not be made liable for sales tax for the assessment years in question. The Dockyard and Engi neering Works Ltd. is at present owner of Dockyard and Engineering Works. It was originally set up, owned and run directly by the Govern ment of East Pakistan upto 31st July, 1954 and thereafter upto 30th September, 1958 it was run acid managed at the instance of Pakistan Industrial Development Corporation. Meanwhile, Dockyard and Engineer ing Works Ltd. having been incorporated on 7th April, 1956 there was an agreement between the said Dockyard and Engineering Works Ltd. and the Government of East Pakistan on 20th February, 1958 for the sale of the Dockyard & Engineering' Works. Although Dockyard & Engineering Works Ltd. commenced its business from 1st October, 1958, the actual transfer of the assets from Government to the company was not com pleted. Thus, it would clearly appear from the aforesaid admitted fac tual position that during the assessment years 1955‑56 and 1957‑58 the Dock yard and Engineering Works was owned by the Government of East Pakistan and run and managed by the Pakistan industrial Development Corporation The assessment of sales tax could only be made upon all goods produce or manufactured in this country and such sales tax was payable by the manufacturer or producer concerned. In the present case, the Dockyard Engineering Works being owned by the Government of East Pakistan during the assessment years, although it was managed by the Pakistan Industrial Development Corporation, the Government of East Pakistan being the producer or manufacturer of any such goods in question could be the assessee for the relevant assessment years. Since the Government could not be made the assessee for the relevant assessment years the Dockyard & Engineering Works Ltd., being its successor in interest also could not be assessed for the assessment years on account of any sales tax. If the predecessor in interest of the Dockyard and Engineering Works could be assessed in that case its successor in interest could also be assessed. In the present case, the predecessor in interest being the Government could not be assessed, so consequently the successor in interest cannot also be assessed.

2. Considering the aforesaid position it must be said that the Tribunal rightly held that the assessee‑Company could not be made liable to pay sales tax for the relevant assessment years when the Dockyard and En gineering Works was owned by the Government and managed by the Pakistan Industrial ‑ Development Corporation. The question is answered in the affir mative and this application is, accordingly, rejected.

3. The prayer for leave to appeal is also refused.

4. SULTAN HOSSAIN KHAN, J.‑I agree..

5. Application rejected.