NATIONAL DETERGENTS LTD. Versus PROVINCE OF SIND

ORDER

ZAFFAR HUSSAIN MIRZA, J.‑ ‑The petitioners in these petitions are owners of immovable properties situated in one of the industrial areas of Dhabeji, Gharo and Kotri. It is submitted on behalf of the petitioners that under section 3 of the Sind Urban Immovable Property Tax Act, 1958, the incidence of the tax fell upon the annual value of buildings and lands situated within the boundary of an "urban area" as defined in section 2(i) of the Act, which can be bifurcated into several rating areas for the purpose of levy of the tax on several urban areas which could be grouped as own rating area. However, by the Sind Urban Immovable Property Tax (Amendment) Act, 1974 the following subsection was introduced after the existing subsection (3‑A) of section 3.

3‑AA. "The tax under subsection (2) and subsection (3‑A) shall also be levied and collected on buildings and lands used partly or exclusively for industrial purposes in the industrial areas of Dhabeji, Gharo and Kotri as are not within any urban area."

After this amendment the respondent demanded the tax from the petitioners, which was challenged by them by means of separate Constitutional Petitions before the Sind High Court. These petitions were dismissed by a Division Bench of the Sind High Court by a common judgment dated 22‑12‑1982.

2. Being aggrieved by the aforesaid judgment the petitioners now seek special leave to appeal through the present petitions. The submission of the learned counsel in support of these petitions is that even if subsection (3‑AA) is treated as an independent charging section, creating a tax liability, the levy and the demand of the tax is illegal as there is no corresponding machinery and assessment provisions for determining tax on industrial properties situated in the aforesaid non‑urban areas, as are available in respect of the properties situated in the urban area.

3. After hearing the learned counsel we feel that the following questions of general public importance have been raised for examination in these petitions:

(1) Whether it is possible for urban immovable property tax to be levied in absence of any machinery provisions being prescribed either in the Act or in the Rules under which the purported levy is being made?

(2) Whether it is possible for urban immovable property tax to be levied in the absence of an assessing authority having been duly created under the Sind Urban Immovable Property Tax Act and/or the Rules framed thereunder:

4. We accordingly grant leave to appeal in all these petitions. The petitioners shall furnish security for costs in the sum of Rs.2,500 in each case.

5. As regards the interim relief, let notice be issued to the respondents and A.‑G. Sind for 1‑3‑1983.

M.Y.H/N‑66/S ??????????????????????????????????????????????????????????????????????????????????????????????? Leave granted.