| Case ID |
205e9a66-6791-4eff-b217-9d8272c7a5e8 |
| Body |
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| Case Number |
Writ Petition No. 3562 of 2020 |
| Decision Date |
Feb 28, 2022 |
| Hearing Date |
Feb 15, 2022 |
| Decision |
The Islamabad High Court ruled in favor of the petitioner, MOL Pakistan Oil and Gas Company, setting aside the professional tax demand of Rs.90,000 issued by the Motor Registration Authority. The court found that the petitioner, being a branch office of a foreign company, was not subject to the professional tax provisions applicable to companies registered under the Companies Act, 2017. The court emphasized that the demand for professional tax was ultra vires the West Pakistan Finance Act, 1964, as amended, and noted that the petitioner had complied with all necessary registration requirements for their vehicles. The court concluded that the issuance of the impugned challan was invalid and allowed the constitutional petition accordingly. |
| Summary |
In the case of MOL Pakistan Oil and Gas Company vs. The Islamabad Capital Territory Administration, the Islamabad High Court addressed the legality of a professional tax demand against a foreign company operating in Pakistan. The petitioner contended that the demand for professional tax was not applicable as it was a branch office of a foreign entity and not a company registered under the Companies Act, 2017. The court examined the definitions of 'company' and 'foreign company' under the Companies Act, concluding that foreign companies are not equated with locally registered companies. The court highlighted that the professional tax provisions under the West Pakistan Finance Act, 1964, as amended, only applied to companies meeting specific criteria, which the petitioner did not fulfill. This decision reinforces the regulatory framework governing foreign companies in Pakistan and clarifies the scope of professional tax applicability, ensuring compliance with constitutional mandates. Keywords such as 'professional tax', 'foreign company regulations', 'Islamabad High Court', and 'Companies Act' are critical for understanding the implications of this ruling. |
| Court |
Islamabad High Court
|
| Entities Involved |
MOL Pakistan Oil and Gas Company,
Islamabad Capital Territory Administration
|
| Judges |
Saman Rafat Imtiaz
|
| Lawyers |
Muhammad Hamzah,
Asif Jahangir Khan
|
| Petitioners |
MOL Pakistan Oil and Gas Company
|
| Respondents |
The Islamabad Capital Territory Administration through Chief Commissioner and 4 Others
|
| Citations |
2022 SLD 755,
2022 PTD 737
|
| Other Citations |
Lone Cold Storage, Lahore v. Revenue Officers, Lahore Electric Power Company 2010 PTD 2502,
Province of Punjab v. Sargodha Textile Mills Limited PLD 2005 SC 988,
Federal Government Employees Housing Foundation v. Malik Ghulam Mustafa 2021 SCMR 201
|
| Laws Involved |
Companies Act, 2017,
West Pakistan Finance Act, 1964,
Motor Vehicles Ordinance, 1965
|
| Sections |
2(17),
2(35),
434,
450,
11,
28
|