Messrs METROPOLE CINEMA (PVT.) LTD. and others _Petitioners vs GOVERNMENT OF PUNJAB and others
This matter concerns a dispute regarding property tax valuation tables and lists issued by the Excise Department. The petitioners challenged the existing valuation tables and the subsequent tax demands raised against them. Upon hearing arguments from both sides, the Supreme Court of Pakistan recorded a compromise agreement reached between the petitioners and the respondent department. Under the terms of this settlement, the Excise Department is mandated to prepare fresh valuation tables and lists after conducting a proper survey in accordance with the law. The existing valuation tables and demands are rescinded for the petitioners, and tax liabilities are to be recalculated based on the new tables, with any excess amounts paid to be adjusted. The Court directed that all civil and criminal actions initiated based on the impugned tables be suspended, provided the tax liability is paid. The Court disposed of the appeals and petitions in terms of this settlement, setting aside the impugned judgments and condoning the delay in filing the petitions.
- Can a court dispose of a tax valuation dispute based on a compromise agreement between the parties?
- Does a compromise agreement regarding tax valuation require the rescission of existing demand notices?
- Is the Excise Department required to conduct a fresh survey when valuation tables are challenged and a settlement is reached?
ORDER
1. ' IFTIKHAR MUHAMMAD CHAUDHRY, J.--- Learned counsel for parties on having addressed argument at a considerable length ultimately agreed for the disposal of instant cases in terms of compromise duly signed by learned counsel for parties as well as the officers of the department.
2. Contents of the compromise reads as under:--
(1) That to the extent of all the appellants/petitioners the Excise Department/respondents shall prepare fresh valuation tables/ valuation lists, after conducting proper survey and following the procedure in accordance with law;
(2) that the present valuation tables/valuation lists and demand created thereon stands rescinded to the extent of the appellants/ petitioners subject to the terms of this agreement;
(3) that the demands raised towards property tax till today of the appellants/petitioners, shall be charged and paid according to the new valuation, tables/lists, the amount in excess shall be adjusted. This exercise is to be concluded in a period of three months;
(4) that any action initiated either criminal or civil jn pursuance to the impugned valuation tables/valuation lists shall be suspended subject to payment of tax;
(5) that the appellants/petitioners undertake to pay tax liability. In such situation the department shall not take any criminal action.
3. Appeals noted hereinbefore are disposed of in above terms. Parties are directed to follow the above settlement in letter and spirit as the matter has been disposed of with the consent of parties.
4. The delay in filing of some of appeals and petitions is condoned as a result of above settlement to the extent of above appeals and petitions impugned judgment is set aside. Petitions Nos.1876-L, 1877-L, 1883-L, 1885-L to1894-L,1916-L, 1917-L, 1973-L, 2011-L to 2014-L, 2021-L,2046-L, 2111-L, 2112-L, 2191-L, 2220-L, 2232-L, 2498-L, 2512-L, 2720-L, 2813-L, 2858-L and 2931 Dof 2004 are converted into appeals and disposed of with no order as to costs.
Cited by 4 cases
- Muhammad Khalid Qureshi vs Province of Punjab through its Secretary, Excise & Taxation Department, Lahore, & another 2016 LHC 3157
- MUHAMMAD KHALID QURESHI vs PROVINCE OF PUNJAB PUNJAB through Secretary, Excise and Taxation Department, Lahore and another 2017 PTD 805
- MUHAMMAD KHALID QURESHI vs PROVINCE OF PUNJAB through Secretary, Excise and Taxation Department, Lahore and another 2017 P.C.T.L.R. 122, 2017 PTD 805, 2017 CLC 523
- Muhammad Khalid Qureshi vs Province of Punjab through its Secretary, Excise & Taxation Department, Lahore and another 2017 P.C.T.L.R. 122