Messrs AZAM AGENCIES vs EXCISE AND TAXATION OFFICER and others
This constitutional petition was filed by M/s. Azam Agencies Limited challenging the demand for tax imposed by the Excise and Taxation Officer under the West Pakistan Finance Act, 1963. The petitioner, a registered importer and exporter under the Imports and Exports (Control) Act, 1950, contested the legality of the tax demand. The core legal question before the Lahore High Court was whether the tax levied under the West Pakistan Finance Act, 1963, upon persons engaged in the trade of importing and exporting was lawful. Relying on the precedent established in the case of Burma Shell Oil Storage and Distributing Co. (Pakistan) Ltd., Karachi v. Excise and Taxation Officer 'L' Division Karachi (PLD 1976 Karachi 1238), the Court held that the tax demand was illegal and issued without lawful authority. Consequently, the High Court accepted the petition and restrained the respondents from levying the tax on the petitioner. The judgment affirms that demands for tax under the West Pakistan Finance Act, 1963, are without lawful authority, thereby providing relief to the petitioner against such tax impositions.
- Is the demand for tax made under the West Pakistan Finance Act, 1963, considered lawful?
- Does the High Court have the authority to restrain tax authorities from levying taxes deemed illegal?
- Can a registered importer and exporter challenge a tax demand under the West Pakistan Finance Act, 1963, through a constitutional petition?
- West Pakistan Finance Act, 1963
- Imports and Exports (Control) Act, 1950
' M/s. Azam Agencies Limited, petitioner, in this Constitutional petition has challenged the demand of tax made under the West Pakistan Finance Act, 1963. The petitioner was registered as Importer and Exporter under the Imports and Exports (Control) Act, 1950 and held licence under the said law.
2. The Supreme Court in the case of Government of West Pakistan v. Messrs Steel Corporation of Pakistan Ltd., Karachi (1974 SCMR 237) held that the West Pakistan Finance Acts, 1962 and 1963 imposed tax on persons and not on the goods imported or exported and that the tax was payable by a person who was engaged in a particular trade. However, in another judgment reported as Burma Shell Oil Storage and Distributing Co. (Pakistan) Ltd., Karachi v. Excise and Taxation Officer "L"
Division Karachi (PLD 1976 Karachi 1238) learned Judges of the Sindh High Court, Karachi, declared the demand of tax made under the West Pakistan Finance Act, 1963, illegal and without lawful authority. In view of this judgment and for the reasons recorded therein the demand of tax under A the West Pakistan Finance Act, 1963, is without lawful authority. Resultantly, the respondents are restrained from levying the tax on the petitioner. The petition thus succeeds and is accepted with no order as to costs.
Cited by 4 cases
- Messrs METCO SHIPBREAKERS And Others vs PAKISTAN Through The Secretary, Ministry Of Finance, Federal Secretariat, Islamabad And Other 1996 MLD 144
- Messrs METCO SHIPBREAKERS and otherss vs PAKISTAN through the Secretary, Ministry of Finance, Federal Secretariat, Islamabad and others 1996 PTD 214
- METCO SHIPBREAKERS and others vs PAKISTAN through the Secretary, Ministry of Finance, Federal Secretariat, Islamabad and others 1996 MLD 144
- M/S. Metco Ship-Breakers And Other vs Pakistan Through The Secratery, PTCL 1996 CL. 70