| Case ID |
0903d621-f791-47cf-a65c-28996da43549 |
| Body |
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| Case Number |
Civil Appeals Nos. 1242 to 1246 of 1997 and 1248 t |
| Decision Date |
Jan 28, 2002 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan held that the levy of Tobacco Development Cess by the Provincial Government is permissible under Article 151(3)(a) of the Constitution. The court stated that the imposition of such a cess does not constitute a prohibition or restriction on the movement of tobacco across provinces. The court emphasized that while the Provincial Assembly has the authority to levy taxes for development purposes, it must provide clear guidelines for the executive to follow in fixing rates. The court directed the Provincial Government to issue a fresh notification fixing the cess rate, maintaining that the cess is a compensatory tax that does not hinder trade. |
| Summary |
This case involves the interpretation of Article 151 of the Constitution of Pakistan, which guarantees free trade and commerce between provinces. The Supreme Court addressed the legality of the North-West Frontier Province's Tobacco Development Cess, imposed on the movement of tobacco. The court concluded that the cess does not violate constitutional provisions as it serves a compensatory purpose for development. The ruling highlights the balance between legislative authority and executive powers, emphasizing the need for clear guidelines to prevent arbitrary taxation. This decision is significant in the context of provincial legislative powers and inter-provincial trade facilitation. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Government of N.W.F.P.,
Pakistan Tobacco Company Ltd.
|
| Judges |
Iftikhar Muhammad Chaudhry,
Mian Muhammad Ajmal,
Hamid Ali Mirza
|
| Lawyers |
Syed Ali Zafar,
Haider Zaman Qureshi,
Imtiaz Muhammad Khan,
M. Sardar Khan,
Barrister Jehanzeb Rahim,
Rashid-ul-Haq Kazi
|
| Petitioners |
Pakistan Tobacco Company Ltd.
|
| Respondents |
Government of N.W.F.P. through Secretary Law
|
| Citations |
2002 SLD 2511,
2002 PLD 460
|
| Other Citations |
PLD 1995 SC 66,
1996 SCMR 1409,
1982 CLC 1252,
1986 CLC 533,
PLD 1982 Lah. 109,
1990 MLD 317,
PLD 1990 Kar. 402,
PLD 1996 Lah. 687,
1992 SCMR 372,
AIR 1961 SC 232
|
| Laws Involved |
Constitution of Pakistan (1973),
North-West Frontier Province Finance Act (III of 1997)
|
| Sections |
151,
142,
11
|