Law: Zakat and Ushr Ordinance, 1980

Section: 3,2(xxiii),2(xx),First Schedule

Zakat and Ushr Ordinance (XVIII of 1980)--- ----Ss. 3, 2(xxiii), 2(xx) & First Sched.---Zakat Collection and Refund Rules, 1981, R.21---Charge and collection of Zakat---Compulsory deduction of Zakat---Sahib-e-Nisab---Definition---"Recognized provident fund"---Exemption from compulsory deduction of Zakat---Scope---Petitioner, impugned compulsory deduction of Zakat from their investments in the National Saving Schemes, on the ground that being a recognized provident fund, they were exempt from compulsory deduction of Zakat---Contention of department inter alia was that National Saving Schemes was a separate class of asset upon which the petitioner was liable to pay Zakat, and no certificate claiming exemption from the same was provided by the petitioner for National Saving Schemes---Validity---Provisions of Zakat and Ushr Ordinance, 1980 did not limit or restrict or identify assets of a person, who was excluded from definition of "Sahib-e-Nisab" which would subjected to compulsory deduction of Zakat and S.2(xxiii) of the same provided that a "recognized provident fund" was excluded from the definition of "Sahib-e-Nisab" and its assets could not be subjected to compulsory deduction of Zakat---Section 3 of the Zakat and Ushr Ordinance, 1980 started with a non obstante clause, therefore, other provisions of the Zakat and Ushr Ordinance, 1980 including Ss.2(xx) and 2(xxiii) of the same would exclude a "recognized provident fund" from definition of "Sahib-e-Nisab" and per R.21 of the Zakat Collection and Refund Rules, 1981, Zakat shall not be deducted in respect of assets of a person claiming an exclusion from the definition of "Sahib-e-Nisab"---Investment made by a "Sahib-e-Nisab" in National Saving Schemes was included within meaning of assets per the first Sched. to the Zakat and Ushr Ordinance, 1980 but Zakat could not be deducted from the same if such assets belonged to a person excluded from meaning of "Sahib-e-Nisab"---High Court observed that on account of being a recognized provident fund, petitioners did not come within the definition of "Sahib-e-Nisab", and their assets, whether or not mentioned in the First Sched. to the Zakat and Ushr Ordinance, 1980;…

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