Law: Constitution of Pakistan 1973

Section: 154(7), 187(2)

Law: Sindh Sales Tax on Services Act, 2011

Section: 63

Law: Sindh Workers Welfare Fund Act, 2014

Section:

Law: Workers Welfare Fund Ordinance, 1971

Section:

Law: Employees Old Age Benefits Act, 1976

Section:

Tagline Vires of a statute and the validity of a Council of Common Interests (CCI) decision cannot be challenged under statutory tax reference jurisdiction; repetitive and meritless litigation by government departments warrants dismissal with exemplary costs. Case Summary The Sindh Revenue Board (SRB) filed multiple tax references before the High Court of Sindh under Section 63 of the Sindh Sales Tax on Services Act, 2011. Through these references, the SRB sought to challenge: The vires (constitutional validity) of the Sindh Workers Welfare Fund Act, 2014. The validity of the decision of the Council of Common Interests (CCI) dated 23.12.2019, which directed that trans-provincial entities' Workers Welfare Fund (WWF) and Employees Old-Age Benefits Institution (EOBI) contributions must remain with the Federal Government until a mutually agreed provincial mechanism is developed. The High Court dismissed all the references in limine with exemplary costs of Rs. 100,000 per reference, holding that: No Jurisdiction Over Vires: The constitutional validity or vires of an enactment cannot be adjudicated by a High Court within its limited, statutory tax reference jurisdiction under Section 63 of the Sindh Sales Tax on Services Act, 2011. Such issues require constitutional writ jurisdiction. Exclusive Forum for CCI Decisions: Under Article 154(7) of the Constitution, any dissatisfaction with a CCI decision must be referred to a joint sitting of the Parliament, which is the sole and exclusive constitutional forum for such disputes. The High Court has no authority to review CCI decisions under tax reference proceedings, and the SRB (being neither the Federal nor a Provincial Government) lacked the locus standi to challenge it. Curbing Frivolous Government Litigation: Relying on the Supreme Court's landmark ruling in Umar Tariq Khan, the Court strongly deprecated the mechanical and repetitive filing of unmerited appeals/references by government departments on settled questions of law. The Court emphasized that such habitual litigation clogs judicial dockets, wastes public funds, and undermines…