PROVINCE OF PUNJAB through Secretary Forest Department, Government
This matter concerns a dispute regarding the levy of sales tax on the supply of fuel and firewood by the Forest Department of the Government of Punjab. The Provincial Government challenged a show-cause notice issued by the Federal Government's Collectorate of Customs and Central Excise, arguing that the articles in question are provincial property and therefore exempt from taxation under the Constitution. The core legal question is whether the property of a Provincial Government is immune from taxation by the Federal Government under constitutional provisions. The Supreme Court of Pakistan held that the dispute, being between the Provincial Government of Punjab and the Federal Government, falls under the exclusive original jurisdiction of the Supreme Court. Consequently, the Court admitted the petition for regular hearing and granted an interim order suspending the recovery of the disputed sales tax pending final adjudication. The principle established is that disputes involving the tax liability of a Provincial Government vis-à-vis the Federal Government invoke the original jurisdiction of the Supreme Court under the Constitution.
- Does the Supreme Court of Pakistan have exclusive original jurisdiction over disputes between a Provincial Government and the Federal Government?
- Is the property of a Provincial Government exempt from taxation by the Federal Government under the Constitution of Pakistan 1973?
- Article 165, Constitution of Pakistan 1973
- Article 184(1), Constitution of Pakistan 1973
ORDER
IRSHAD HASAN KHAN, J.---The dispute herein relates to levy of Sales Tax amounting to Rs1,29,058 on account of supplies of fuel and firewood.
2. Sheikh Altaf Elahi, Additional Advocate-General, Punjab contends that the Forest Department, Government of Punjab, is not liable to pay the disputed payment of sales tax to the Federal Government, pursuant to the impugned show-cause notice dated 29-8-1987, issued by the Deputy Collector, Government of Pakistan, Collectorate of Customs and Central Excise, inasmuch as, the articles in question belong to the Provincial Government whose property is exempt from all kinds of taxes under Article 165 of the Constitution.
3. Clearly, the dispute raised in these proceedings, is between the Government of Punjab and the Federal Government, therefore, in terms of Article 184(1) of the Constitution this Court alone has jurisdiction to adjudicate upon the matter.
4. The contentions raised by the Additional Advocate-General need consideration.
5. Admit. Notice. Meanwhile, the recovery of the disputed payment of sales tax is suspended till the final decision of the petition. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.