| Citation(s) |
|---|
| 2013 SLG 1641 2013 SLD 1641 2013 SCMR 1337 |
Supreme Court of Pakistan
Constitutional Petitions Nos.33 and 34 of 2005 and CivilMiscellaneous Application No.3821 of 2013, decision dated:21st June, 2013. (Regarding sudden increase in petroleumproducts on 13-6-2013 due to increase in sales tax.)
IFTIKHAR MUHAMMAD CHAUDHRY, C.J., IJAZ AHMED CHAUDHRY AND IQBAL HAMEEDUR RAHMAN, JJ
M. Ikram Ch., Advocate Supreme Court for Petitioners (in Constitutional Petition No. 33 of 2005). Nemo for Petitioners (in Constitutional Petition No. 34 of 2005). Muneer A. Malik, Attorney-General for Pakistan assisted by Faisal Siddiqui for
Respondent
Constitutional Petitions Nos.33 and 34 of 2005 and CivilMiscellaneous Application No.3821 of 2013, decision dated:21st June, 2013. (Regarding sudden increase in petroleumproducts on 13-6-2013 due to increase in sales tax.)
IFTIKHAR MUHAMMAD CHAUDHRY, C.J., IJAZ AHMED CHAUDHRY AND IQBAL HAMEEDUR RAHMAN, JJ
M. Ikram Ch., Advocate Supreme Court for Petitioners (in Constitutional Petition No. 33 of 2005). Nemo for Petitioners (in Constitutional Petition No. 34 of 2005). Muneer A. Malik, Attorney-General for Pakistan assisted by Faisal Siddiqui for
Respondent
Engineer IQBAL ZAFAR JHAGRA and anothers
VS
FEDERATION OF PAKISTAN and others
Law:
Section:
(a) Sales Tax Act (VII of 1990)---Ss. 3, 13(1) & Sixth Sched.---Provisional Collection of Taxes Act (XVI of 1931), Ss. 3, 4 & 5---Sales Tax Special Procedures Rules, 2007, R. 20(2)(c), proviso---Price Control and Prevention of Profiteering and Hoarding Act (XXIX of 1977), Ss. 6 & 7---Constitution of Pakistan, Arts.3, 9, 24, 70, 77 & 184(3)---Constitutional petition under Art.184(3) of the Constitution regarding sudden increase in prices of petroleum products due to increase in general sales tax---Federal Government/ Executive increasing general sales tax (GST) from 16% to 17% with immediate effect on the value of taxable supplies by way of a declaration under S. 3 of Provisional Collection of Taxes Act, 1931, pending passing of the Finance Bill (Money Bill) 2013-14 in the Parliament ---Legality---Plea of Federal Government that in view of Art.77 of the Constitution taxing power of the Parliament could be delegated to the Government/Executive and the delegatee of such power might then decide at what rate tax was to be imposed or what exemption or reduction, if any, was to be granted---Validity---Article 77 of the Constitution laid down that no tax shall be levied for the purpose of the Federation except by or under the authority of Act of Majlis-e-Shoora (Parliament)---Declaration in question, which was inserted in the Finance Bill (Money Bill) 2013-14 was an executive act of the Government and not a legislative act of the Majlis-e-Shoora (Parliament) unless it was passed by the Majlis-e-Shoora (Parliament), therefore, imposition or increase as well as reduction of the General Sales Tax (GST) with immediate effect in pursuance of the said declaration made under S. 3 of the Provisional Collection of Taxes Act, 1931 was against salutary principle envisaged by Art.77 of the Constitution---Delegation of power to the Executive/Government in the matter of imposing tax would create havoc in the tax regime---No such delegation could be considered to have been conferred upon the Government in terms of S. 3 of the Provisional Collection of Taxes Act, 1931, allowing it to insert a declaration for the purpose of imposing/increasing or reducing General Sales…
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