Law: Sales Tax Act, 1990

Section: 13

Law: Constitution of Pakistan, 1973

Section: 18,25,199,247(3)

SALES TAX ACT, 1990 (VII OF 1990) Section: 13 - Entry No. 152 in the Sixth Schedule - Constitution of Pakistan 1973, Articles 18, 25, 199, 247(3) - SRO. No. 1212(I)/2018 and 1213(I)/2018, both dated 05.10.2018 - Administration of Tribal Areas - Charge of sales tax, further tax and extra tax on the supply of electricity- Exemption available through Entry No. 151 on supply of taxable activities in FATA/PATA taken away through Entry No. 152 in the 6th Schedule to Sales Tax Act, 1990 - Industries established after 31.05.2018 within erstwhile Tribal Areas FATA/PATA as well as the Ghee, Cooking Oil and Steel industries, excluded from availing exemption on supply of electricity - Vires of Entry No. 52 - Challenged - Seeking declaration to the effect that Entry No. 152 is discriminatory and confiscatory in its nature and liable to be read down - Validity - FACTS The petitioners, who have established their manufacturing units in the erstwhile PATA, have challenged the vires of Entry No. 52 of 6th Schedule to Sales Tax Act, 1990 according to which the attempt of respondents to charge sales tax, further tax, extra tax etc. on the supply of electricity has been questioned through constitutional petition. ARGUIMENTS Learned counsel for the petitioners have contended that through Entry No. 151 all the supplies made by persons carrying on taxable activities in FATA/PATA are exempt from the charging provision of Sales Tax Act, 1990, however, through Entry No. 152, two classes of manufacturers have been excluded from the said exemption as far as the charging of sales tax on supply of electricity is concerned. Counsel for the Revenue have argued that vires of fiscal statute is challenged which has been passed by a competent legislature and fiscal statutes cannot be struck down solely on the ground that the rate of tax levied was unreasonably high. DECISION (a) Classification of persons or properties into categories - Imposition of different taxes on persons similarly placed - Scope - The harmonious reading of both the provisions of the Constitution i.e. Article 18 and Article 25 would be that the legislature has the authority to classify persons or properties into categories and…

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