Law: Constitution of Pakistan, 1973

Section: 10-A, 77, 127, 199

Law: Code Of Civil Procedure, 1908.

Section: 9, 115, 13, 21, 151

 Summary

The respondent filed a suit seeking a declaration that it could transport timber from Balakot Forest Division to Havelian without payment of any Tehsil Council cess/timber tax, challenging Notification No. 2256-62 dated 29.01.2003 as being without lawful authority. The Trial Court decreed the suit, and the Appellate Court affirmed the judgment.

The High Court dismissed the revision petition and held that under the NWFP Local Government Ordinance, 2001, a Tehsil Municipal Administration (TMA) can only propose and collect taxes, cesses, and fees specifically authorized under Part III of the Second Schedule. Since the Schedule does not authorize any cess on transportation of timber, the levy had no statutory basis and was ultra vires, void, and unenforceable.

The Court further held that the Civil Court had jurisdiction under Section 9 CPC because the challenge related to the very authority of the TMA to impose the levy, which is a civil matter involving lack of jurisdiction. It also ruled that rehearing of an appeal under Order XLI Rule 21 CPC necessarily implies setting aside the earlier ex parte appellate judgment.