| Case ID |
3af12065-223f-4dda-a101-e9b0d1f17c84 |
| Body |
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| Case Number |
Constitutional Petition No.1236 of 2008 |
| Decision Date |
Jan 14, 2009 |
| Hearing Date |
Dec 22, 2008 |
| Decision |
The Islamabad High Court dismissed the constitutional petition filed by Fecto Belarus Tractors Limited, determining that the amendments made to the Customs Act and Sales Tax Act by the respective Ordinances were valid. The court ruled that the amendments effectively removed prior defects in tax impositions, and thus the petitioner was liable for the customs duty and sales tax. The court emphasized that mala fide cannot be attributed to the legislature and that the amendments were enacted within the constitutional framework, denying any claims for refunds of the duties and taxes imposed. The court also highlighted the retrospective effect of the amendments, affirming their legality and reinforcing the principle of legislative authority over taxation matters. |
| Summary |
In the case of Fecto Belarus Tractors Limited vs. Government of Pakistan, the Islamabad High Court addressed significant issues surrounding the imposition of customs duties and sales tax on tractor imports under the Awami Tractor Scheme. The court considered the validity of amendments made to the Customs Act and Sales Tax Act through the Customs (Amendment) Ordinance and Sales Tax (Amendment) Ordinance. The petitioner, Fecto Belarus Tractors Limited, contended that these amendments were mala fide and infringed upon vested rights. However, the court upheld the amendments, stating that they rectified previous legal deficiencies and confirmed that such legislative changes could be enacted retroactively. The ruling underscored the principle that legislative bodies possess the authority to validate tax laws, even if it impacts previous judicial decisions. The court's decision was pivotal in clarifying the scope of administrative powers regarding taxation and the legislative process in Pakistan. This case is crucial for understanding the intersection of administrative law, tax legislation, and the implications of legislative amendments on businesses and their legal rights. |
| Court |
Islamabad High Court
|
| Entities Involved |
GOVERNMENT OF PAKISTAN,
FECTO BELARUS TRACTORS LIMITED
|
| Judges |
MUHAMMAD MUNIR PERACHA, J
|
| Lawyers |
Mr. Nasir Saeed Sheikh, Advocate
|
| Petitioners |
FECTO BELARUS TRACTORS LIMITED
|
| Respondents |
GOVERNMENT OF PAKISTAN through Ministry of Finance,
Economic Affairs and 3 others
|
| Citations |
2009 SLD 1327,
2009 PTD 390
|
| Other Citations |
Not available
|
| Laws Involved |
Customs Act (IV of 1969),
Sales Tax Act (VII of 1990)
|
| Sections |
19(3),
6(1-A)
|