AMANULLAH KHAN YASINZAI, J.- This appeal under section 47 of the Sales Tax Act, 1990 (hereinafter referred to as the Act) is directed against the judgment dated 27.10.2000 passed by the Customs, Excise and Sales Tax Appellate Tribunal Karachi whereby the appeal filed by the , respondents against the judgment dated 22.1.2000 passed 1 by the Collectorate of Customs, Central Excise and Sales Tax Appeals-ll, Karachi was accepted and Show-Cause Notice dated 26.2.1999 issued by the Collectorate of Sales Tax, Quetta was discharged.
2. That factual background of the case is that respondent Balchem Pvt. Ltd. Incorporated under the Companies Ordinance, 1984 has been engaged in the manufacture of Water treatment chemicals in the name of Aqua Clene. Under Notification No. SRO 580 (1)/91, dated 27.6.1991 the Company was exempted from Sales Tax under the Act upto 30th June, 1996. During the scrutiny of the Sales Tax Record, auditor of the petitioner submitted report that balance sheet for the year 1996-97 was Rs.
3,09,93,387/- whereas return filed, by the respondent was . Rs. 2,16,50,913/-. The difference of the same came to Rs.. 93,40,470/- and less sales ,tax of Rs. 16,81,645/- was not paid. Similarly for the year 1997-98 challan showed Rs. 12008770/- whereas the balance sheet showed Rs. 1,21,48,410/- difference being Rs. 1,49,640/- on which Sales Tax amounting to Rs. 17/455/- was not paid; therefore, in total Sales Tax of Rs., 16,99,100/- for the years 1996 to 1998 was not paid. The Collectorate of Sales Tax, Quetta at Hub issued Show-Cause Notice to the respondent on 20.2.1999 calling upon him as to why the afore-mentioned amount of Sales Tax be not recovered from him as contemplated under Section 34 of the Sales-Tax Act and further why action should not be taken under section 33 of the Act.
Pursuant to such Show-Cause Notice, the Collectorate of Sales Tax, Quetta after hearing the respondent and auditor of the appellant vide Order dated' 15.9.1999, directed the appellant to make payment of Sales Tax as mentioned in the Show-Cause Notice and also an additional amount at the rate of 5% on the total amount was imposed as penalty. Being aggrieved from the Order dated 15.9.1999 passed by Additional Collector Sales Tax, the respondent filed an appeal before the Collectorate of Customs, Central Excise & Sales Tax Appeals-II, Karachi who after hearing the parties rejected the same. Thereafter the appellant approached Customs Excise and Sale Tax Appellate Tribunal, Karachi who accepted the appeal and held that the Sales Tax demanded by the appellant was exempted under the SRO 580(1)/91, dated 27.6.1991, vide Order dated 27.10.2000.
Being aggrieved from the same, the appellant has filed the instant appeal.
3. Mr. K.N. Kohli, learned Deputy Attorney General contended that the learned Appellate Tribunal had misinterpreted the SRO dated 27.6.1991 wherein it is clearly mentioned that Sales Tax was exempted upto 30.6.1991 and Show-Cause Notice to the respondent was issued in respect of Sales Tax on goods supplied after 30.6.1996 being taxable supply as contemplated under section 2(41) of the Act. Further as embodied in section 2(44) of the Act regarding time of supply i.e. After 30.6.1996, the goods supplied were liable to sales tax; thus the learned Appellate Tribunal misinterpreted the SRO and over-looked the aforementioned provisions of the Act.
4. Mr. Aziz A. Sheikh, learned counsel for the respondent contended that appeal under section 47 is only maintainable on the point of law; no legal question was involved; therefore, appeal was liable to be dismissed and further the Appellate Tribunal had correctly interpreted the SRO dated 27.6.1991; therefore, the appeal is liable to be dismissed and further submitted that the Show-Cause Notice issued by the appellant is barred under the doctrine Promissory estopple; thus the exemption of Sales Tax vide the said SRO could not be withdrawn to the detriment of the respondent. The learned counsel in support of his contention relied upon the following case-law:-
1. 1998 PTD 3064.
2. 1998 SCMR 440.
3. 1999 SCMR 1442.
4. 1999 SCMR 1072.
Adverting to the arguments of the learned counsel for the parties, it may be convenient to reproduce SRO No. 580(1 )/91, dated 27.6.1991 which read as under:- GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND ECONOMIC AFFAIRS.
Islamabad, the 27th June, 1991.
NOTIFICATION (SALES TAX)
" S.R.O. 580(1 )/91.-- ln exercise of the powers conferred by sub-section (1) of Section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that all goods produced or manufactured by such industries which are set up in the North-West Frontier Province (and Winder Industrial Estate, District Lasbela, Balochistan) between the 1st July, 1991 and the 30th June, 1996, shall be exempt from the tax payable under the said Act for a period of five years from the date of industry is set up.