Law: Oil and Gas Regulatory Authority (Amendment) Ordinance, 2002

Section: 8,43B

Law: Constitution of Pakistan, 1973

Section: 199

Summary A group of captive power plant operators challenged gas bills issued by SSGC for recovery of a newly introduced levy under the Off the Grid (Captive Power Plants) Levy Ordinance, 2025 and Act, 2025. The core issue was whether the levy could be applied retrospectively for gas consumed before the first notification dated 07.03.2025 (and later notification dated 23.07.2025), which fixed the rate of levy under Section 3 read with Section 4 of the Ordinance/Act. The Petitioners argued that retrospective billing was unlawful, as neither the Ordinance/Act nor the notifications expressly permitted retrospective application. Respondents contended that the levy became applicable once the statute was enacted and that notifications merely operationalized its rate. The Court held that the levy could not be applied retrospectively, as neither the statute nor notifications authorized it, and fiscal statutes must be interpreted strictly in favour of taxpayers. Accordingly, retrospective billing was declared ultra vires Sections 3 and 4, and recovery for the prior period was set aside. Sections / Provisions Used Section 3 – Off the Grid (CPPs) Levy Ordinance/Act, 2025 Section 4 – Off the Grid (CPPs) Levy Ordinance/Act, 2025 Oil and Gas Regulatory Authority Ordinance, 2002 (Section 8 & 43B referred contextually) Rules of Business, 1973 (referenced for rate calculation mechanism) Article 199 – Constitution of Pakistan, 1973 (constitutional jurisdiction) 2 Two-Word Description Retrospective Levy Fiscal Dispute     JU D G M E N T The Petitioners in all the above noted petitions are consumers of natural gas and operate Captive Power Plants1 (“CPP”) as defined under Off the Grid (Captive Power Plants) Levy Ordinance, 2025 (“Ordinance”) and the legislation that repealed it on 01.07.2025, namely Off the Grid (Captive Power Plants) Levy Act, 2025 (“Act”). The Petitioners through the noted petitions have challenged bills2 issued by Respondent No.3 (SSGC) for collecting the levy3 for a period prior to notification dated 07.03.2025, whereby the rate of the levy was first notified. The notification dated…