| Case ID |
31c953d8-9dd5-4b23-8245-1f47e7b7c47e |
| Body |
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| Case Number |
Civil Appeals Nos. 1363 to 1365 of 2018 and Civil |
| Decision Date |
Oct 13, 2023 |
| Hearing Date |
Oct 13, 2023 |
| Decision |
The Supreme Court declared that the Cantonment Boards are not empowered to impose professional taxes on those engaged in professions, trades, callings, or employments in cantonment areas. The Court held that the professional tax mentioned in Article 163 of the Constitution, when collected by the Cantonment Boards, is unconstitutional. The amendments made to Section 60(1) of the Cantonments Act, 1924, which authorized the imposition of professional taxes, were ruled ultra vires the Constitution. The decision reaffirmed the ruling in the ICI Pakistan Ltd. v. Tehsil Council case, emphasizing that only provincial assemblies have the authority to impose such taxes. Consequently, the appeals were dismissed with costs, and the amount collected unlawfully must be refunded. |
| Summary |
In a landmark ruling by the Supreme Court of Pakistan, the case involving Cantonment Boards and their authority to levy professional taxes was addressed. The Court ruled that the Cantonment Boards were not authorized under the Constitution to impose professional taxes on individuals engaged in various professions within cantonment areas. This decision was based on a thorough review of legal precedents, particularly the ICI Pakistan Ltd. v. Tehsil Council case, which established that only provincial assemblies possess the power to impose such taxes. The Court's ruling emphasized the unconstitutionality of any professional tax collected by Cantonment Boards and mandated the refund of any such amounts collected. This case underscores the importance of adhering to constitutional provisions regarding taxation and local governance, ensuring that only designated authorities can levy taxes to maintain legal and democratic integrity in tax administration. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Habib Bank Limited,
Cantonment Board Faisal,
Cantonment Board Clifton,
Zubi International Private Limited,
K & N Foods (PVT.) Limited,
Messrs Venus Pakistan (PVT.) Limited
|
| Judges |
Qazi Faez Isa,
Amin-ud-Din Khan,
Athar Minallah
|
| Lawyers |
Muhammad Umer Riaz,
M. Naeem Sadiq,
Tahir Ishaq Mughal,
Shaista Altaf,
Zeeshan Adhi,
Saifullah,
Ghulam Nabi Shah,
Ayaz Ali Mangi
|
| Petitioners |
Cantonment Board Faisal,
Cantonment Board Clifton
|
| Respondents |
Habib Bank Limited, Karachi,
K & N Foods (PVT.) Limited,
Messrs Venus Pakistan (PVT.) Limited
|
| Citations |
2024 SLD 3026,
2024 SCMR 1049
|
| Other Citations |
ICI Pakistan Ltd. v. Tehsil Council PLD 2007 SC 428,
Pfizer Laboratories Ltd. v. Federation of Pakistan PLD 1998 SC 64
|
| Laws Involved |
Cantonments Act, 1924
|
| Sections |
60(1)
|