| Case ID |
093183b8-5d89-44af-a6e2-cdf2f96209ae |
| Body |
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| Case Number |
Civil Appeals Nos. 400 and 401 of 2006 |
| Decision Date |
Jul 21, 2011 |
| Hearing Date |
Jul 21, 2011 |
| Decision |
The Supreme Court of Pakistan dismissed the appeals, affirming the Lahore High Court's ruling that the Market Committee is a local authority entitled to exemption from property tax under the relevant laws. The Court emphasized that to qualify as a local authority, an entity must possess a distinct legal personality, perpetual succession, the ability to sue and be sued, and the power to levy taxes and maintain its own fund. The Court found that the characteristics of the Market Committee aligned with the legal definition of a local authority, thereby justifying its exemption from property tax as stipulated by the relevant laws. |
| Summary |
The case revolves around the legal status of the Market Committee in Punjab as a local authority and its entitlement to tax exemptions under the Punjab Urban Immovable Property Tax Act, 1958. The Supreme Court of Pakistan reviewed whether the Market Committee, established under the Punjab Agriculture Produce Markets Ordinance, 1978, qualifies for exemption from property tax. The Court determined that the Market Committee meets the criteria of a local authority due to its juristic personality, functions of self-government, and the power to manage its own funds. The decision underlines the importance of recognizing the operational autonomy of local bodies in fiscal matters, ensuring they are not unduly burdened by taxes that could hinder their functions and objectives. By affirming the High Court's ruling, the Supreme Court upheld the principles of local governance and the rights of local authorities in Pakistan, reinforcing the legal framework that supports their operations and fiscal responsibilities. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
National Bank of Pakistan,
Federation of Pakistan through Secretary Ministry of Finance, Islamabad,
Market Committee, Chichawatni District Sahiwal
|
| Judges |
Mian Saqib Nisar,
Sarmad Jalal Osmany
|
| Lawyers |
Mudassar Khalid Abbasi, A.A.-G.,
Arshad Ali Chohan, Advocate Supreme Court,
Ameen Watto, Secretary, Market Committee, Okara,
Aslam Javed, Secretary, Market Committee, Arifwala
|
| Petitioners |
Province of Punjab through District Coordination Officer, Okara
|
| Respondents |
Market Committee, Okara through Chairman/Secretary
|
| Citations |
2011 SLD 1979,
2011 SCMR 1856
|
| Other Citations |
1991 CLC 118,
PLD 1965 SC 201,
PLD 1977 Kar. 152,
1981 PTD 66,
1976 PTD 56,
AIR 1981 SC 951
|
| Laws Involved |
Punjab Agriculture Produce Markets Ordinance, 1978,
West Pakistan Urban Immovable Property Tax Act, 1958,
General Clauses Act, 1897,
Constitution of Pakistan
|
| Sections |
20,
21,
4(b)(ii),
3(28),
185(3)
|