' FALAK SHER, J.--- We propose to dispose of Civil Petitions for leave to Appeal Nos.4255 to 4258-L of 2002 having commonality of facts and law emanating out of the same judgment delivered by a learned Division Bench of the Lahore High. Court, granting the respondent's Custom Appeals reversing the affirmative findings of the Customs, Excise and Sales Tax Appellate Tribunal, Lahore dated 18-9-2001opining that the exemption of Sales Tax perceived by S.R.O.582(I)/98 dated 12-6- 1998 is not restricted to the plant and machinery imported by the registered manufacturer of taxable goods vide the impugned judgment, dated 24-10-2002.
2. The respondents having imported industrial sewing machines as commercial importers availing exemption from the sales tax on the basis of the S.R.O. Referred to (supra), were proceeded against for the alleged evasion of Sales Tax under section 36 of the Sales Tax Act, 1990 alleging that the banked upon S.R.O. Only contemplates exemption of plant and machinery imported by the manufacturer of taxable goods registered with the Sales Tax Department and not to the Commercial Importer, eventually culminating into Collector of Customs (Appraisement), Lahore order dated 27-10-1999 directing payment of the spelt out sales tax whose findings on appeal were upheld by the Customs, Excise and Sales Tax Appellate Tribunal , Lahore on 18-9-2001, but were set aside by the Lahore High Court vide the impugned judgment construing that para.(a) of the S.R.O.
Referred to (supra) confers exemption of Sales tax to both commercial as well as manufacturer of taxable goods registered with Sales Tax Department opining as under:-- "(5) There is no cavil to the proposition that the goods subject-matter of these appeals were ordinarily taxable in terms of section.3 of the Sales Tax Act, 1990. However, in this general liability to pay the tax an exception was created with the issuance of the afore-referred notification. The exemption stipulated in clause (a) of the said notification is available for an item which is "operated by power of any description" and "to be used for the manufacture of taxable goods" and the third rider in the said clause is by "registered persons". Thus, the law does not create a condition that the manufacturer or registered persons should be the importer. The only rider stipulated in law is with regard to the nature and use of the item i,e, it has to be operated by power, it has to be used for the manufacture of taxable goods and by persons who are registered persons. Admittedly the appellants had produced before the Collector Appraisement and the Tribunals a list of those persons to whom the sewing machinery were supplied, the name of their concerns as also the number of their relevant sales tax number. No evidence in rebuttal was produced by the respondent-Customs Department either before the first or second forum or even before this Court.
The evidence led by the appellant that the goods were used for the manufacturers are taxable goods and by registered persons remains unrebutted.
(6) ... Yet another factor which would weigh with the Court is that the Customs Department vide Notification S.R.0.987 dated 30-8-1999 created further conditions for exemption of sales tax which were not stipulated in the earlier notification i,e, S. R.O.582(1)/98 which is under consideration before this Court. The issuance 'of this latter notification further confirms that the Board of Revenue realized that language of the law had to be amended if it wanted to lay down more conditions. But any benefit to which the appellants were entitled during the currency of the earlier notification cannot be denied to them."
3. Against which leave to appeal is being sought reiterating department's stance.
4. Which we are afraid are ill-founded because plane reading of para.(a) of the S.R.O. Relevant text whereof for the sake of convenience of reference is reproduced herein below:-- "Exemption from sales tax on plant and machinery ' Notification No,S.R.O.582(I)/98, dated 12th June, 1998. In exercise of the powers conferred by clause
(a) of subsection (2) of section 13 of the Sales Tax Act, 1990, read with item No,44 in the Sixth Schedule to the said Act and in suppersession of Ministry of Finance and Economic Affairs Notification No,S.R.O.230 (I)/97, dated 29th March, 1997, the Federal Government is pleased to notify the following plant and machinery, other than generators, generating sets, wires and . Cables, for the purposes of exemption of sales tax, namely:--
(a) Plant and machinery, operated by power of any description, to be used for the manufacture of taxable goods by the registered persons."
' Patently demonstrates the intendmeift of the framers thereof adjudged on logical as well as literal rule of interpretation making no distinction qua A the commercial and industrial manufacture importer, envisaging three fold qualifying riders for availing the exemption viz. The goods should be a plant and machinery (other than the set out exception); operatable by power of any description and to be used for manufacture of taxable goods by the registered persons, (who need not the importer thereof).
5. Further, the department seemingly being conscious of this construction, has deployed different language in the subsequent S.R.0.987(1)/99, dated 30-8-1999 enshrining the following:-- "Exemption from sales tax on certain plant and machinery. Notification No,S.R.O. 987(1)/99, dated 30th August, 1999. In exercise of the powers conferred by subsection (I) of section 13 of the Sales Tax Act, 1990, read with serial No,44 in the Sixth Schedule to the said Act, the Federal Government is pleased to notify the following plant and machinery excluding such imported plants and machinery as are manufactured locally and also excluding generators, generating sets, wires and cables and maintenance spares, for the purposes of exemption from sales tax, namely:
(a) Plant and machinery, operated by power of any description as are imported or purchased locally by a registered person to be used for the manufacture of taxable goods by that registered person." ' viz. Substituting the expression the by that i,e, restricting the exemption to the imported or locally purchased plant and machinery to be used by the manufacturer of taxable goods by that registered person.
6. Consequently, the petitions being devoid of any substance, fail and are hereby dismissed. Leave declined.