Law: Sales Tax Act, 1990

Section: 3

Law: Constitution of Pakistan, 1973

Section: 199

Law: Income Tax Ordinance, 2001

Section: 235

(a) Sales Tax Act (VII of 1990)---S.3---Income Tax Ordinance (XLIX of 2001), S.235---Constitution of Pakistan (1973), Art.199---Constitutional petition---Withholding tax, charging of---Minimum fixed charges of electricity connection---Grievance of petitioner was that authorities could not charge with-holding tax under Sales Tax Act, 1990 and Income Tax Ordinance, 2001, on electricity bill for the months when no electricity was consumed---Validity---Sales tax could only be charged on manufacturing and supply of goods and goods supplied in furtherance of business---Even if electricity supply was considered to be "goods", petitioner had not consumed even a single unit of the same---There was no concept of actual supply of electricity to petitioner or any additional transfer in furtherance thereof---Charge of withholding tax was not covered within the provisions of Sales Tax Act, 1990--Deduction of withholding tax was confiscatory and not within the mandate provided by Sales Tax Act, 1990---Withholding tax collected from petitioner under S.235 of Income Tax Ordinance, 2001, was also not within the mandate provided therein---Deduction from fixed bill of electricity was unlawful and unjust so long as petitioner did not consume electricity---High Court, in exercise of constitutional jurisdiction, declared that charge of minimum charges by authorities was justified and needed no interference---High Court directed the authorities to delete with-holding tax in terms of ' General Sales Tax and Income Tax from electricity bills of petitioner, as the same was against Sales Tax Act, 1990 and Income Tax Ordinance, 2001---Petition was allowed accordingly. Water and Power Development Authority and another v. M.N Steel Re-rolling Mills and 23 others 1999 SCMR 494 and Collector Sales Tax and Central Excise, Rawalpindi v. Messrs Wah Nobel Chemical Ltd, Wah Cantt 2008 PTD 1693 ref. (b) Interpretation of statutes--- ----One should remain within the mandate of law and not to go beyond its language. JUDGMENT KHAWAJA FAROOQ SAEED, J.---Through this writ petition direction has been sought for declaring the deduction of with-holding tax through electricity bills as unlawful and ultra…

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