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Keywords: Public Purpose, Federal Government, Violation Of Article, Constitutional Petition, Tax Liability, Fixed Assets, Collection Of Tax, Financial Year, Tax Credit, Principles Of Policy, Recovery Of Tax, Consideration, Show Cause Notice, Federation, Tax Year Ayesha A. Malik J: This common judgment decides upon the issues raised in the Writ Petitions detailed in Schedule "A" and "B", appended with the judgment, as all Petitions challenge the vires of Section 8B of the Sales Tax Act,1990 ("Act") and raise common questions of law and facts. 2. Petitions mentioned in Schedule "A", challenge the vires of Section 8B of the Act on the ground that it is in violation of Article 23 of the Constitution of Islamic Republic of Pakistan, 1973 ("Constitution") being confiscatory in nature as it restricts adjustment of input tax to 90% of the output tax and the remaining 10% of the adjustable amount is illegally retained by the Respondents and carried forward into the next tax period. Petitions detailed in Schedule "B" in addition to the challenge to the vires of Section 8B of the Act, have impugned show cause notices calling for an explanation from the Petitioners with respect to adjustment of input tax in excess of the 90% of the output tax. 3. The Petitioners before the Court are involved in various sectors of business such as the chemical industry, plastic industry, polypropylene industry and the textile industry. Some are involved in the manufacturing business of steel pipes and of foot wear. It is the case of all the Petitioners that Section 8B of the Act, promulgated through the Finance Act, 2007, is illegal and unconstitutional as the Respondents grant input tax adjustment up to 90% of the output tax for every tax period and retain 10% of the adjustable amount, which amount should be refunded to the Petitioners. This 10% of the adjustable amount is carried forward in each tax period that is every month and ultimately at the end of the year, any amount pending is refunded to the Petitioners on an application seeking refund. Learned counsels for the Petitioners argued that the provisions of Section 8B of the Act are confiscatory in nature as the FBR retains the 10%…

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