| Case ID |
03653754-babb-427d-9a12-aa06a451f11a |
| Body |
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| Case Number |
C.Ps. Nos. D-3539, D-1135 of 2016 and 2892 of 2014 |
| Decision Date |
Jul 15, 2017 |
| Hearing Date |
Apr 25, 2017 |
| Decision |
The Sindh High Court ruled that the imposition and collection of professional tax by the Cantonment Boards were illegal and without lawful authority. The court found that the jurisdiction to levy such taxes lay exclusively with the Provincial Legislature as per Article 163 of the Constitution. The court emphasized that local governments, including Cantonment Boards, do not possess the authority to impose professional taxes, which undermines their actions against the petitioners. Therefore, the court allowed the petitions, declaring the recovery of professional tax from the petitioners to be ultra vires the Constitution. |
| Summary |
This case revolves around the legality of professional tax imposed by the Cantonment Boards in Karachi. The petitioners, including Habib Bank Limited, contested the authority of the Cantonment Boards to levy such taxes, asserting that only the Provincial Legislature has the jurisdiction to do so under Article 163 of the Constitution of Pakistan. The court found that the Cantonment Boards acted beyond their powers, leading to a significant ruling on local government authority and taxation. This landmark decision emphasizes the separation of powers and the legal framework governing taxation in Pakistan, establishing a precedent for future cases involving local government tax authority. Keywords such as 'Cantonment Boards,' 'professional tax,' 'Sindh High Court,' and 'Constitution of Pakistan' are essential for SEO optimization. |
| Court |
Sindh High Court
|
| Entities Involved |
Habib Bank Limited,
M/s. K N (Pvt.) Limited,
Venus Pakistan (Pvt.) Limited,
Cantonment Board Faisal,
Cantonment Board Clifton
|
| Judges |
AQEEL AHMED ABBASI,
NAZAR AKBAR
|
| Lawyers |
Mrs. Saman Rafat Imtiaz,
Asadullah Shaikh,
Muhammad Arif,
Abdullah Munshi,
Junaid Farooqui,
Naeem Ahmed,
Abdul Waheed Khan,
Saifullah AAG,
Ghulam Shabbir Baloch
|
| Petitioners |
M/s. K N (Pvt.) Limited,
Venus Pakistan (Pvt.) Limited,
Habib Bank Limited
|
| Respondents |
Cantonment Board Faisal,
Cantonment Board Clifton, Karachi,
M/s. Five Star Advisory Service
|
| Citations |
2018 SLD 250,
2018 CLC 116
|
| Other Citations |
Pakistan through Secretary, Ministry of Defence v. Province of Punjab and others PLD 1975 SC 37,
Province of Punjab and others v. Sargodha Textile Mills Limited and others PLD 2005 SC 988,
ICI Pakistan Limited v. Tehsil Council, Pind Dadan Khan and others PLD 2007 SC 428,
Olympia Textile Mills v. Province of Punjab and others 2004 MLD 814,
Fauji Sugar Mills v. Zila Nazim and others 2007 MLD 302,
New Chaudhry Fibre through Sole Proprietor v. Excise and Taxation Department and others PLD 2015 Lah. 369,
Habib Jute Mills v. Province of Sindh and another 2012 PTD 901
|
| Laws Involved |
Cantonments Act, 1924,
Constitution of Pakistan, 1973
|
| Sections |
60,
210,
163
|