A & B BEVERAGES LTD. (PRIVATE) through Managing Director vs GOVERNMENT OF PAKISTAN and 3 others

1. AJMAL MIAN, C.J.---The petitioner has impugned the levy of sales tax on Carbon-di-oxide (CO) which is one of the ingredients used in manufacturing SEVEN UP soft drink and becomes part of the end-product. The question whether an ingredient of a product, which is independently marketable can be subject to levy of sales tax though not factually sold by the manufacturer has been subject-matter of more than one case before more than one Division Bench of his Court. Reference may be made to the following cases:--

(1) Messrs Electric Lamp Manufacturers of Pak. Ltd. v. The Government of Pakistan, 1989 PTD (Karachi) 42.

(2) Commissioner of Sales Tax v. Messrs Pakistan Cables Ltd. PLD 1988 Karachi 233. in which it has been held that if the manufacturer uses any material/ingredient, which is independently marketable by virtue of clause (d) of subsection (6) of section 3 read with section 3, subsection (iv) of the Sales Tax Act, 1951, the manufacturer would be liable to pay sales tax. We are bound by the above judgments. We would, therefore, dismiss the above petition with no order as to costs. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.