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

1. SYED MUHAMMAD HUSSAIN, J.‑ This is an application at the instance of the Commissioner of Sales `fax, Dacca Zone under section 17 (1) of the Sales 'fax 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 Engineering Works Ltd. is at present owner of Dockyard and Engineering Works. It was originally set up, owned and run directly by the Government of East Pakistan upto 31‑7‑1954 and thereafter upto 30‑9‑1958, it was run and managed at the instance of Pakistan Industrial Development Corporation. Meanwhile, Dockyard and Engineering 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 and Engineering Works. Although Dockyard and Engineering Works Ltd. commenced its business from Ist October 1958, the actual transfer of the assets from the Government to the company was not completed. Thus, it would clearly appear from the aforesaid admitted factual position that during the assessment 1955‑56 and 1957‑58 the Dockyard 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 produced manufactured in this country and such sales tax was payable by the manu facturer or producer concerned. In the present case, the Dockyard and 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 pro ducer 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 and 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 pre decessor‑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 no be assessed, so consequently the successor in interest cannot also b 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 Engineering Works was owned by the Government and managed by the Pakistan Industrial Development Corporation. The question is answered in the affirmative and this application is, accordingly, rejected.

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

4. SULTAN HUSSAIN KHAN, J.‑I agree.

5. Application rejected.