| Case ID |
df0b258f-f609-4849-80bf-b0fb8cc2738e |
| Body |
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| Case Number |
W.P. No. 131564 of 2018 |
| Decision Date |
Dec 11, 2018 |
| Hearing Date |
|
| Decision |
The Lahore High Court declared the amendment in Section 4(c) of the Sales Tax Act, 1990, enacted through the Finance Act, 2017, as ultra vires the Constitution, thus rendering it of no legal effect. The court emphasized that the Federal Government alone has the constitutional authority to enact such provisions and the delegation of this power to the Board with the approval of the Federal Minister-in-charge violated the constitutional mandate. Consequently, the notification issued under this provision was also struck down as unconstitutional. |
| Summary |
In the case of M/S T.U. Plastic Industry Co. (PVT.) LTD. vs. Federation of Pakistan and Others, the Lahore High Court addressed the legality of a notification issued by the Federal Board of Revenue that amended previous regulations regarding sales tax. The petitioners challenged the notification, arguing it imposed additional tax obligations contrary to established laws. The court found that the amendments made by the Finance Act, 2017, which allowed the Board to impose further taxes without direct Federal Government oversight, were unconstitutional. This decision underscores the importance of adhering to constitutional principles in tax legislation, particularly the delegation of legislative powers. The ruling is significant for businesses affected by taxation laws, emphasizing the need for compliance with constitutional requirements governing tax imposition. Keywords related to this case include 'Sales Tax Act', 'constitutional law', 'taxation', 'Lahore High Court', and 'legal precedent', which are trending topics in legal and business discussions. |
| Court |
Lahore High Court
|
| Entities Involved |
|
| Judges |
SHAHID KARIM, JUSTICE
|
| Lawyers |
Mansoor Usman Awan,
Sarfraz Ahmad Cheema,
Shahzad Ahmad Cheema,
Shahid Usman,
Shahid Sarwar Chahil,
Hashim Aslam Butt,
Mian Mahmood Rashid,
Mian Abdul Ghaffar,
Khubaib Ahmad,
Ghulam Murtaza,
M. Ajmal Khan,
Imran Rasool,
Khalil ur Rehman,
M.M. Akram,
Umair Anwar,
Qadeer Kalyar,
Shahzeen Abdullah,
Syed Alamdar Hussain,
Ibrar Ahmad,
M. Mansha Sukhera,
Naveed Zafar Khan,
Wasim Ahmad Malik,
M. Naeem Munawar,
Irfan Liaqat,
Hafiz M. Azhar Ali,
M. Asif Butt,
Farid Adil Ch.,
M. Tahir Amin,
Waseem Ashiq Sufi,
Sher Baz Ali,
Waheed Habib,
Mirza Aurangzeb Baig,
Nabeel Rafaqat Ch.,
Asif Imran Awan,
Asghar Leghari,
Muqaddam Sukhera,
Malik M. Ali Awan,
Khalid Gulzar,
M. Saqib Sheikh,
M. Zafar Iqbal Mian,
Ch. M. Zafar Iqbal,
Liaqat Ali Ch.,
Aamer Khan,
Sahar Iqbal,
Kausar Perveen,
Irshad Ahmad Chatha,
Zafar Iqbal Bhatti,
M. Asif Hashmi,
Qamar Farooq,
Tahir Mahmood Ahmad Khokhar,
Rai Amir Ijaz Kharal,
Ijaz Makhdoom Ch.,
Syed Zain ul Abideen Pukhari
|
| Petitioners |
M/S T.U. PLASTIC INDUSTRY CO. (PVT.) LTD.
|
| Respondents |
FEDERATION OF PAKISTAN AND OTHERS
|
| Citations |
(2019) 120 SLD 1836,
(2019) 121 PTD 1542
|
| Other Citations |
PLD 2016 SC 808,
2016 PTD 2269
|
| Laws Involved |
Sales Tax Act, 1990,
Customs Act, 1969
|
| Sections |
3,
3(1A),
4(c),
18,
18(3),
74A,
18(3)
|