| Citation(s) |
|---|
| 2017 SLG 1661 2017 SLD 1661 2017 SCMR 1344 (2020) 122 TAX 467 |
Supreme Court of Pakistan
Civil Appeal No. 767 of 2014 and C.M.A. No. 565-K of 2013,decision Date : 29-05-2017. Dates of hearing: 6th, 12th and13-04-2017. (On appeal against the judgment Dated 10.07.2013passed by the High Court of Sindh, Karachi, in C.P. No.D-2643 of 2013)
MUSHIR ALAM, JUSTICE, QAZI FAEZ ISA, JUSTICE, SARDAR TARIQ MASOOD, JUSTICE
Farooq H. Naek, Senior Advocate Supreme Court for Appellant No. 1.Khalid Javed Khan, Advocate Supreme Court, Fouzi Zafar, Advocate Supreme Court and Raja Abdul Ghafoor, Advocate-on-Record for Appellant No. 2.Syed Naveed Amjad Andrabi, Advocate Supreme
Civil Appeal No. 767 of 2014 and C.M.A. No. 565-K of 2013,decision Date : 29-05-2017. Dates of hearing: 6th, 12th and13-04-2017. (On appeal against the judgment Dated 10.07.2013passed by the High Court of Sindh, Karachi, in C.P. No.D-2643 of 2013)
MUSHIR ALAM, JUSTICE, QAZI FAEZ ISA, JUSTICE, SARDAR TARIQ MASOOD, JUSTICE
Farooq H. Naek, Senior Advocate Supreme Court for Appellant No. 1.Khalid Javed Khan, Advocate Supreme Court, Fouzi Zafar, Advocate Supreme Court and Raja Abdul Ghafoor, Advocate-on-Record for Appellant No. 2.Syed Naveed Amjad Andrabi, Advocate Supreme
SINDH REVENUE BOARD THROUGH CHAIRMAN GOVERNMENT OF SINDH AND ANOTHERVSTHE CIVIL AVIATION AUTHORITY OF PAKISTAN THROUGH AIRPORT MANAGER
Law: Sindh Sales Tax on Services Act, 2011
Section: 2(5),2(6),2(7),2(79),3,Second Schedule
Law: Pakistan Civil Aviation Authority Ordinance, 1982
Section: 3,15,16,17,18,21(3),26,28
Law: Constitution of Pakistan, 1973
Section: 97(1),98(1),142(a),Fourth Schedule,Part1,ItemNos.22,24,27,32,49,53 ,54,PartII,ItemNo.6
Law: Sindh Sales Tax on Services Rule, 2011
Section: 40-A,40-B
(a) Sindh Sales Tax on Services Act (XII of 2011)---.--- ---.----Ss. 2(5), 2(6), 2(7), 2(79), 3 & Second Sched., Tariff Headings 9819.9090 & 9826.0000---.---Sindh Sales Tax on Services Rules, 2011, Rr. 40-A & 40-B---.---Pakistan Civil Aviation Authority Ordinance (XXX of 1982), Ss. 3, 15, 16, 17, 18, 21(3), 26 & 28---.---Constitution of Pakistan, Arts. 97(1), 98(1), 142(a) & Fourth Sched., Part. 1, Item Nos. 22, 24, 27, 32, 49, 53 & 54 & Part II, Item No. 6---.---Civil Aviation Authority ("the Authority")---.---Sales tax on services imposed by the Provincial Government---.--- Constitutionality---.--- Authority performed functions mentioned in the Federal Legislative List and was also a federal regulatory authority envisaged in Item 6 of Part I of the Federal Legislative List---.---Functions and regulatory duties performed by the Authority were within the exclusive sphere of the Federal Legislature and the Provincial Government could not impose sales tax on the purported services provided by the Authority---.---Sindh Sales Tax on Services Act, 2011 and the Sindh Sales Tax on Services Rules, 2011 to the extent that they imposed on Civil Aviation Authority sales tax on services were contrary to the provisions of the Constitution, and were void ab initio and of no legal effect---.---Sindh Sales Tax on Services Act, 2011 and the Sindh Sales Tax on Services Rules, 2011 to the extent that they taxed the Civil Aviation Authority violated Art. 142(a) of the Constitution since only the Federal Legislature could make laws with respect to matters pertaining to the Authority. Civil Aviation Authority ("Authority") was a regulatory authority which performed functions that were within the exclusive domain of the Federal Legislature. Functions performed by the Authority were those which were listed in the Federal Legislative List. Legislative duties and functions performed by the Authority were not services. Authority had no option but to undertake its statutory duties and responsibilities. Merely because the Authority imposed a fee or charge for providing them, which Parliament had authorized it to impose, would not in itself bring the provision of…