Law: Punjab Sales Tax Ordinance (II of 2000)

Section: 3,Preamble

Law: Constitution of Pakistan, 1973

Section: FourthSehed,25,142,199

(a) Punjab Sales Tax Ordinance (II of 2000)---S.3---Constitution of Pakistan (1973), Fourth Sehed., Items, Nos.49, 59, Arts.25, 142 & 199---Constitutional petition---Levy of sales tax on the services rendered by the dry cleaners---Pleas of discrimination on the ground that no such tax had been levied on any other services and that sales tax could only be levied by the Federal Government in view of Entry No.49, Fourth Sched. to the Constitution read with Art-142, thereof ---Validity--­Held, taxes levied on services rendered by any person were not covered by Entry No.49 of the Fourth Sched. to the Constitution---Article 142 of the Constitution provided that if a matter was not covered by any entry in the Fourth Sched. to the Constitution, the same shall be the domain of the Provincial Government to legislate on the subject---Article 25, Constitution of Pakistan prohibited discrimination within a class of persons but did not prohibit the classification as such---Principles. On the face of it, taxes levied on services rendered by any person were not covered by item No.49 of Fourth Schedule to Constitution of Pakistan (1973) Income Tax Ordinance. Item No.49 of the Constitution did not deal with the taxes on services rendered at all. Item No.59 of the Schedule also could not be relied upon by the assessee as it could not be said that the levy of sales tax on services was matter of incidental or ancillary to any matter enumerated in the Fourth Schedule of the Constitution. According to Article 142 of the Constitution if a matter was not covered by any entry in the Fourth Schedule, it shall be the domain of the Provincial Legislature to, legislate on that subject. That being so the contention that as the Federal Government was empowered to levy tax on the sales and purchases of goods imported, exported, produced, manufactured or consumed, it could also levy tax on services rendered could not be accepted. Article 25 of the Constitution prohibited discrimination within a class of persons but did not prohibit the classification as such. The dry cleaners were a class apart and they could not claim that if the sales tax was not being levied on the services rendered by…

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