Law: Punjab Finance Act, 2015

Section: 7,7(1),7(3)

PUNJAB FINANCE ACT, 2015----Sections: 7, 7(1), 7(3) - Education cess on clubs - Challenge to - Double taxation - Contention of the Appellants - Constitutional petition - High Court held that clubs are already paying sales tax since July, 2012 under the provision of the Punjab Sales Tax on Services Act, 2012, thus it is sufficient to hold that the clubs were burdened with double taxation which is not permissible under the law - Section 7 of the Act was thus declared ultra vires the Constitution by the Lahore High Court - Validity - Challenge to - FACTS There are before us two appeals (being Nos.907 and 908/2020) arising out of a of a learned Single Bench of the Lahore High Court dated 16.12.2015 and seven appeals (being Nos.649, 650, 651, 652, 653, 654 and 655/2019) arising out of a dated 26.11.2015 of the same learned Single Judge. Both s are in essence identical and the Province is the appellant in all the appeals. The Province is aggrieved by the decisions as in terms thereof section 7 of the Punjab Finance Act, 2011 (which remained in the field till 2015) (“2011 Act”) was declared ultra vires the Constitution. ARGUMENTS The respondents, who were of course the petitioners before the learned High Court, had submitted before that Court that the levy was in substance nothing other than the sales tax on services. It was contended that such a tax was already in the field when the 2011 Act was enacted, being then the Punjab Sales Tax Ordinance, 2000 (“2000 Ordinance”). The said Ordinance was repealed and replaced by the Punjab Sales Tax on Services Act, 2012 (“2012 Act”), which continues to be in the field. Thus, at all material times for the levy imposed by the aforementioned section 7 there was a sales tax on services in the Province. On such basis it was contended that the respondents were being subjected to double taxation, which according to them was impermissible under the Constitution. Before us the learned Additional Advocate General, ably assisted by the Senior Law Officer, submitted that the learned High Court had erred materially in coming to the foregoing conclusion. It was submitted that double taxation was not impermissible under the Constitution and…

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