1. ABDUL KADIR SHAIKH, J.--The petitioner, a private limited company, is a manufacturer of biscuits, and in manufacturing the same, it consumes vegetable ghee. In the sales tax assessment for the assessm ents years 1968-1969, 1969-1970 and 1970-71, petitioner claimed refund of sales tax in respect of vegetable ghee consumed in the manufacture of biscuits on the ground that vegetable ghee so consumed was subject to sales tax through the imposition of capacity duty levied under the Central Excises and Salt Act, 1944 was subsequently exempted under a notification, dated 16-6- 1967.
2. The Sales Tax Officer refused. Petitioner---s claim by the order dated 17-6-1972 on the ground that since by virtue of the said notification the levy of sales tax on vegetable ghee was abolished and was not paid, the question of refund of the sales tax in respect of vegetable ghee used in the manufacture of biscuits did not arise. Aggrieved by these orders, petitioner filed three separate appeals for the assessm ent years concerned. The appeals were allowed by the Income-Tax Appellate Tribunal by a consolidated order dated 27-2-1963. The Department being aggrieved by the judgment of the Tribunal filed an application under section 17(1) of the Sales Tax Act 1951 in the Sind High Court referring the following question for decision: "Whether on the facts and in the circumstances, the Tribunal was justified in directing the Sales Tax Officer to allow refund of sales tax on the amount of vegetable Ghee consumed when vegetable Ghee had suffered no sales tax at all."
3. The learned Judges of the Division Bench of the High Court who heard the case answered the question in the negative by the judgment dated 28-4-1984. It is in these circumstances that the petitioners now seek leave to appeal from the judgment of the High Court.
4. Mr. Iqbal Naim Pasha, learned counsel appearing in support of these three petitions, submits that since the sales tax payable on vegetable Ghee was merged with excise duty and levied under a consolidate item, that is, capacity duty, the petitioner is entitled to refund of the sales tax on the consumption of vegetable Ghee in the manufacture of biscuits after the levy of sales tax was exempted.
5. This amongst others, is an important question of law which is likely to arise in large number of cases. It is, therefore, necessary that an authoritative decision of this Court be rendered. Leave to appeal is granted. Security Rs.2,500, in each case.
6. Appeals will be heard on the present record. It is, however, open to the parties to file additional documents, if any.
7. This is not a fit case for grant of interim relief prayed for. Miscellaneous petitions filed in this behalf are dismissed.