1. JUDGMENT: AJMAL MIAN, C.J.---1. The petitioner has impugned the levy of sales tax on Carbon-dioxide (CO2) 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 this Court.
2. Reference may be made to the following cases:--
(1) Messrs Electric Lamp Manufacturers of Pak Ltd. v. The Government of Pakistan, (Now Reported PTCL 1990 CL. 238).
(2) Commissioner of Sales Tax v. Messrs Pakistan Cables Ltd. (Now Reported as PTCL 1990 CL 215). in which it has been held that if the manufacturer uses any material/ingredient, which is independently marketable by virtue of clause (d) of sub-section (6) of Section 3 read with Section 3, sub-section (4) 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.