Law: Constitution of Pakistan, 1973

Section: 153, 154(7), 187(2), 189

Law: Sindh Sales Tax on Services Act, 2011

Section: 63

 Summary

The High Court dismissed multiple tax references filed by the Sindh Revenue Board (SRB) challenging decisions of the Appellate Tribunal relating to the Sindh Workers Welfare Fund Act, 2014 and the validity of the Council of Common Interests (CCI) decision dated 23.12.2019.

The Court held that:

1. The Tribunal’s decisions were consistent with the binding CCI decision of 23.12.2019, which declared that the Workers Welfare Fund (WWF) and EOBI would remain under the Federal Government until a mutually agreed mechanism is developed by the provinces.
2. The CCI decision had already been recognized and followed by a Division Bench of the High Court in earlier constitutional petitions.
3. Under Article 154(7) of the Constitution, only the Federal Government or a Provincial Government may challenge a CCI decision before a joint sitting of Parliament. Such challenge cannot be entertained by the High Court in statutory reference jurisdiction.
4. The vires (constitutional validity) of the Sindh Workers Welfare Fund Act, 2014 could not be examined in a tax reference under Section 63 of the Sindh Sales Tax on Services Act, 2011.
5. The references were frivolous, repetitive, and contrary to settled law. The Court relied heavily on the Supreme Court judgment in Umar Tariq Khan, condemning unnecessary government litigation and misuse of judicial process.

Accordingly, all references were dismissed in limine with costs of Rs.100,000 per reference payable to the Sindh High Court Clinic.