Law: Protection of Economic Reform Act, 1992

Section: 6

Law: Law Reforms Ordinance, 1972

Section: 3

Law: Sales Tax Act, 1990

Section: 7(2)(iv),7,2(26)(42),2

(a) Good governance- -Sovereign commitments-Scope-Great importance is attached to government adhering to sovereign commitments made by it, whether in the form of statutory orders or notifications issued by it or in the shape of policies announced by it-Commitment made on behalf of government should neither be lightly disregarded nor deliberately ignored-Orderly development of a civilized society requires that citizens should be entitled to place implicit faith and confidence on representations which are made by or on behalf of duly constituted governmental authorities. (b) General Clauses Act (X of 1897)- --S. 21-Locus poenitentiae, principle of-Scope-Mere fact that power to withdraw exemption notification exists with government does not necessarily imply that such power should be exercised-Such power cannot be exercised in violation of settled principles of law and it should only be utilized for valid and sufficient reasons and in furtherance of justifiable policy objectives. (c) Administration of justice- - What cannot be done directly can also not be done indirectly. AIR 1949 Privy Council 190; Madden v. Nelson and For Shppeard Respondent Co. 1899 A.C. 626 at P 627 and Dagl Baloch v. Government of Pakistan PLD 1968 SC 313 rel. (d) Notification- -Retrospective effect-Principle-Notification which purports to impair an existing or vested right or imposes a new liability or obligation cannot operate retrospectively in absence of legal sanction. (e) Sales Tax Act (VII of 1990)- ---Ss. 2 (26) (42) & 7 (2)(iv)-Protection of Economic Reforms Act (XII of 1992), S. 6-S.R.O. No.477(1)11995, dated 14-6-1995-S.R.O. No. 515(1)195, dated 14-6-1995-Constitution of Pakistan, Art. 199- Law Reforms Ordinance (XII of 1972), S. 3-Intra-court Appeal- Exemptions, withdrawal of-Grievance of appellant company was that exemptions granted by law could not be withdrawn with executive notifications-Validity-If an exemption from payment of excise duty or any other tax was granted for a specified period on certain conditions and if a person had fulfilled those conditions, such person acquired a vested right and he could not be denied the exemption before expiry of such specified…