| Citation(s) |
|---|
| 2017 SLG 1693 2017 SLD 1693 2017 PLD 28 |
Supreme Court of Pakistan
Civil Appeals Nos. 1049 to 1055/2011, Civil Misc.Application No. 1841/2016 in Civil Appeal No. 1054/2011,Civil Appeals Nos. 24 to 26, 64 to 66, 918 to 944, 961 and1061/2013, 1266 to 1299, 1364 to 1379/2014, 72 to 74, 178,179, 388, 316 to 321, 583 to 5
MIAN SAQIB NISAR, JUSTICE, MUSHIR ALAM, JUSTICE, TARIQ PARVEZ, JUSTICE
For the Appellant(s):Mir Afzal Malik, Advocate Supreme Court and Ch. Akhtar Ali, Advocate-on-Record (in C.As. 1049 to 1055/2011 and 64 to 66/2013).Mir Afzal Malik Advocate Supreme Court and Tariq Aziz, Advocate-on-Record (in C.As. 1364 to 1371/2014).
Civil Appeals Nos. 1049 to 1055/2011, Civil Misc.Application No. 1841/2016 in Civil Appeal No. 1054/2011,Civil Appeals Nos. 24 to 26, 64 to 66, 918 to 944, 961 and1061/2013, 1266 to 1299, 1364 to 1379/2014, 72 to 74, 178,179, 388, 316 to 321, 583 to 5
MIAN SAQIB NISAR, JUSTICE, MUSHIR ALAM, JUSTICE, TARIQ PARVEZ, JUSTICE
For the Appellant(s):Mir Afzal Malik, Advocate Supreme Court and Ch. Akhtar Ali, Advocate-on-Record (in C.As. 1049 to 1055/2011 and 64 to 66/2013).Mir Afzal Malik Advocate Supreme Court and Tariq Aziz, Advocate-on-Record (in C.As. 1364 to 1371/2014).
WORKERS WELFARE FUNDS, M/O HUMAN RESORUCES DEVELOPMENT, ISLAMABAD THROUGH SECRETARY AND OTHERSVSEAST PAKISTAN CHROME TANNERY (PVT) LTD. THROUGH G.M. (FINANCE), LAHORE AND OTHERS
Law: Workers Welfare Fund Ordinance, 1971
Section: 2,4,6,10,10A
Law: Income Tax Ordinance, 2001
Section: 60A
Law: Employees Old Age Benefits Act, 1976
Section: 9,17(4),22,22A,22B,23
Law: Constitution of Pakistan, 1973
Section: 70,73,73(2)
(a) Tax--.-- --.--"Tax" and "fee"--.--Distinction--.--Tax was a compulsory exaction of monies by public authorities, to be utilized for public purposes--.--Distinguishing feature of tax was that it imposed a common burden for raising revenue for a general as opposed to a specific purpose; the latter being one of the key characteristics of a fee. Government of North-West Frontier Province through Secretary Agriculture and others v. Rahimullah and others 1992 SCMR 750 and Federation of Pakistan through Secretary M/o Petroleum and Natural Resources and another v. Durrani Ceramics and others 2014 SCMR 1630 ref. (b) Workers' Welfare Fund Ordinance (XXXVI of 1971) --.-- --.--Ss. 2, 4, 6, 10 & 10A [as amended by section 12 of the Finance Act (III of 2006) and subsequently by S. 8 of the Finance Act (I of 2008)] & Preamble--.--Constitution of Pakistan, Art. 73(2)--.--Income Tax Ordinance (XLIX of 2001), S.60A--.--Vires of amendments made by Finance Acts, 2006 and 2008--.--Obligation on industrial establishments to contribute towards the Workers' Welfare Fund--.--Whether such obligation was a 'tax'--.--Whether amendments to the Workers' Welfare Fund Ordinance, 1971 could have been lawfully brought through Money Bills i.e. Finance Acts of 2006 and 2008--.--Contributions made to the Workers' Welfare Fund were not in the nature of a "tax"--.--Workers' Welfare Fund could only be used for very specific purposes as stated exhaustively in the Workers' Welfare Fund Ordinance, 1971 itself, and not for general or undefined purposes--.--Such particular feature of the contribution made in terms of the said Ordinance automatically precluded it from being classified as a "tax"--.--Further S.60A of the Income Tax Ordinance, 2001 provided that any contributions made by a person under the Workers' Welfare Fund Ordinance, 1971 would be deducted from the total income of that person, which suggested that the contributions were not a tax, as they were being deducted from the total income, as opposed to being considered as a "tax credit"--.--Amendments made in the Workers' Welfare Fund Ordinance, 1971 by way of Finance Acts of 2006 and 2008 did not fall within the parameters of…