| Case ID |
140de26d-412d-49df-8757-6f152794b7c9 |
| Body |
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| Case Number |
W.P. No. 2384 of 2015 |
| Decision Date |
Jan 18, 2016 |
| Hearing Date |
Oct 21, 2015 |
| Decision |
The court dismissed the constitutional petition filed by UCH Power Private Limited against the Gas Infrastructure Development Cess Act, 2015. The petitioners argued that the cess imposed was unconstitutional and that they would not derive any benefit from it since they sourced gas from a specific field. However, the court found that the cess is a fee that extends benefits to those who require natural gas for commercial purposes, which includes the petitioners as they produce electricity using natural gas. The court concluded that despite the petitioners' arguments, they are users of natural gas and would ultimately benefit from the projects funded by the cess. Therefore, the court upheld the validity of the cess and dismissed the petition. |
| Summary |
In the case of UCH Power Private Limited vs. Federation of Pakistan, the Islamabad High Court addressed the constitutionality of the Gas Infrastructure Development Cess Act, 2015. The petitioners, UCH Power Private Limited, contested the cess on the grounds that it was unconstitutional and that they would not benefit from it, as they sourced their gas from a specific field. The court analyzed the nature of the cess, distinguishing it from a tax, and established that it is a fee meant to provide specific benefits to gas consumers, particularly in the commercial and industrial sectors. The court's ruling emphasized that the benefits from the projects funded by the cess would ultimately accrue to the petitioners, as they are users of natural gas for electricity production. The decision reinforced the legal understanding of cess as a fee rather than a tax, upholding the government's authority to levy such charges for infrastructure development. This case highlights the ongoing legal discourse surrounding the applicability and implications of the Gas Infrastructure Development Cess Act, which is critical for stakeholders in the energy sector and public policy. The ruling serves as a precedent for future cases involving similar challenges to regulatory frameworks in Pakistan's energy industry. |
| Court |
Islamabad High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
UCH POWER PRIVATE LIMITED
|
| Judges |
AAMER FAROOQ, JUSTICE
|
| Lawyers |
Barrister Umair Majeed Malik,
Saad Muhammad Hashmi,
Khawaja Saeed-ul-Zafar,
Sardar Ahmed Jamal Sukhera,
Syed Hussnain Ibrahim Kazmi,
Malik Muhammad Nazir
|
| Petitioners |
UCH POWER PRIVATE LIMITED
|
| Respondents |
FEDERATION OF PAKISTAN AND OTHERS
|
| Citations |
2016 SLD 2885,
2016 PLD 67
|
| Other Citations |
PLD 2014 Isl. 83,
2015 SCMR 1385,
East Pakistan Chrome Tannery Pvt. Ltd. v. Federation of Pakistan and others 2011 PTD 2643,
1993 SCMR 1705,
PLD 1975 SC 50,
1973 SCMR 2,
PLD 1981 Lah. 640,
Pak. Com Ltd. and others v. Federation of Pakistan PLD 2011 SC 44,
The Hinger Rampur Coal Co. Ltd. and others v. The State of Orissa and others AIR 1961 SC 459,
Federation of Pakistan v. Durrani Ceramics 2014 SCMR 1630,
PLD 2015 SC 354
|
| Laws Involved |
Gas Infrastructure Development Cess Act, 2015
|
| Sections |
3,
4
|