Law: Workers Welfare Fund Ordinance, 1971

Section: 4

Workers Welfare Fund Ordinance (XXXVI of 1971)---S. 4---Charitable Endowment Act, (VI of 1890)---S.R.O. 1194 dated 27-11-1991 and S.R.O. 1195 dated 27-11-1991---Mode of payment by, and recovery from, industrial establishment---Taxpayer was a manufacturer and seller of pipes---Workers' Welfare Fund was charged---Taxpayer contended that Pakistan Telecommunication Company Limited and Telecom Foundation owned 40% and 60% shares respectively in the company, were not liable to Workers' Welfare Fund as the Telecom Foundation Welfare Fund was established as charitable endowment fund for the benefits and welfare of existing and ex-servicemen of the Telecom Foundation and its subsidiaries---Revenue contended that nature of business of taxpayer was different from its parent company as it derive income from manufacturing and sales of pipes which fell within the purview of "manufacturer" under the definition of "industrial establishment" and mere fact that the Pakistan Telecommunication Company Limited or Telecom Foundation held some shares of the taxpayer company, did not confer any entitlement upon the taxpayer to claim immunity from payment of Workers Welfare Fund---Validity---Arguments of the taxpayer that the company being a subsidiary of a holding or parent company entitled to exemption from Workers' Welfare Fund, automatically and mutatis mutandis enjoy the same exemption status as its parent company did, was not acceptable---Taxpayer's claim of immunity from Workers' Welfare Fund was based on sole ground that its parent companies, Pakistan Telecommunication Company Limited and Telecom Foundation, who happened to hold 60 & 40% of its shareholding, were not liable to pay Workers' Welfare Fund---Such reason was without substance---Argument that taxpayer was an industrial establishment and a separate entity independent of its holding or parent company was quite persuasive and Workers' Welfare Fund was chargeable from the taxpayer---Order passed by the First Appellate Authority was vacated and orders passed by the Officer Inland Revenue stood restored by the Appellate Tribunal. ORDER MUNSIF KHAN MINHAS (JUDIICAL MEMBER).---The instant appeals have been filed by the…

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