Law: Punjab Local Government Ordinance, 1979

Section: 39(1)(b) , 16(1)(3)(8) , (9)

  Punjab Local Government Ordinance (VI of 1979)---   ----S. 39(1)(b)---Punjab Zila Council (Goods Exit Tax) Rules, 1990, R.16(1)(3)(8) & (9)---Letter No.S.O.VI(LG)/2-5/97, dated 27-7-1998 issued by Government of Punjab Local Government Rural Development Department-- Demand of 5 % security amount and revolving fund---Legality---Demand of 5 security amount and revolving fund by Authority from contractors who were granted lease for collection of Goods Exit Tax of Zila Council for specified period had been challenged by contractors contending that said demand was illegal and arbitrary as same had got no sanction of law---Terms and conditions of contract of lease granted to contractors were to be regulated not only by Punjab Zila Council (Goods Exit Tax) Rules, 1990, but also by other terms and conditions which would be specified by Government---Instructions issued by Provincial Government vide Letter No.S.O.VI(LG)2-5/97, dated 27-7-1998 had provided 5 % security to be deposited by contractor before embarking upon collection of Goods Exit Tax---Local Councils were also authorised to secure certain amount calculated on basis of refund claims of preceding year from contractor as revolving fund so as to settle refund claims---Instructions vide said letter were applicable without any discrimination so as to protect contractor as well as taxpayers---Contractor, in circumstances, were bound to abide by said instructions before embarking upon collection of Goods Exit Tax---Challenge of contractors to charge of 5 % of security as well as of revolving fund, was not apt in circumstances---If contractors were aggrieved of quantum of revolving fund, they could approach respective administrator who would make demand on basis of refund cl4ims during last two years. Khan Faiz Ullah Khan v. Government of Pakistan through the Establishment Secretary, Cabinet Secretary and another PLD 1974 SC 291 ref. Dr. M. Mohyuddin Qazi for Petitioner. Ashtar Ausaf Ali, A.-G. and Fauzi Zafar, A.A.-G. for Respondents. Date of hearing: 29th October, 1998. JUDGMENT This judgment shall dispose of Writ Petition No.21323 of 1996 and 19962 of 1998 titled Zakaullah Khan v. District Council,…