FEDERATION OF PAKISTAN through-Secretary Finance and others vs Messrs
This appeal by leave arises from a judgment of the Peshawar High Court, which granted the respondent, an industrialist in the Gadoon Amazai Industrial Estate, the benefit of a one-time 25% relief on the total value of raw material, following the withdrawal of tax incentives previously granted under S.R.O. 517(1)89. The core legal question was whether the respondent's application for this relief was time-barred due to the Central Board of Revenue's internal deadline, despite the Economic Coordination Committee's decision not specifying a cut-off date for such applications. The Supreme Court dismissed the Federation's appeal, holding that the Board of Revenue's rejection of the application based on a self-imposed deadline was illegal. Relying on the precedent set in 'Messrs Diamond Industries (Pvt.) Limited v. Federation of Pakistan', the Court affirmed that all industrialists affected by the withdrawal of the notification were entitled to the relief. The key principle laid down is that administrative bodies cannot impose restrictive deadlines on benefits granted by the Economic Coordination Committee when the Committee's own decision did not prescribe such a limitation, thereby ensuring equitable access to relief for all eligible parties.
- Can the Central Board of Revenue reject an application for relief based on a deadline not prescribed by the Economic Coordination Committee?
- Are all industrialists affected by the withdrawal of S.R.O. 517(1)89 entitled to the one-time 25% relief on raw material value?
- Does a self-imposed deadline by the Board of Revenue for filing applications for relief override the underlying entitlement granted by the Economic Coordination Committee?
MUNIR A. SHEIKH, J.---This appeal by leave is directed against the judgment dated 3-4-2001 of the Peshawar High Court, Peshawar through which Constitutional petition filed by the respondent- Messrs Gandaf Steel Mills (Pvt.) Limited was accepted and it has been declared to be entitled to get the benefit of one time relief of 25% of the total value of raw material on the basis of recommendations of Economic coordination Committee (ECC).
2. The respondent was one of the affectees of S.R.O. 517(1)89 dated 3-6-1989 under which they were given incentive to establish industry in Gadoon Amazai Industrial Estate for availing tax holiday for unlimited period. It was provided in the subsequent notification through which the said notification was withdrawn that such industrialists would be entitled to one time relief of 25% of the total value of raw material as decided by Economic, Coordination Committee (ECC). The respondent filed Writ Petition No.1976 of 1998 before the Peshawar High Court for the grant of the said benefit which was dismissed as premature on the ground that it did not apply to the Central Board of Revenue within the time fixed by the said Board to avail the said benefit under the. Recommendations of the Economic Coordination Committee (ECC). Civil Petition No.997 of 1999 was filed before this Court which was also dismissed on the same ground with the observation that the respondent could if, so avail of the said benefit by making application to the Board of Revenue. The respondent on 22- 6-1999, about four days after the decision of this Court, filed application before the Board of Revenue to avail of the said benefit which was followed by a number of reminders but the Board of Revenue rejected the said request on 19-9-2000 against which Constitutional Petition No. 153 of 2001 filed by the respondent has been accepted through the impugned judgment dated 3-4-2001 against which this appeal by leave is directed.
3. Learned counsel for the petitioner submitted that a date was fixed before which the affected industrialists were required to submit applications and the respondent's application was belated, therefore, it was not entitled to the said benefit. It has been held in the case of Messrs Diamond Industries (Pvt.) Limited through its Director Finance v. Federation of Pakistan through Ministry of Finance and 5 others (C.A. 903 of 1999), decided on 5-6-2000 that there was nothing in the decision of the Economic Coordination Committee of the Cabinet as to date before which such an application was to be made, therefore, the approach of the Board of Revenue to reject such application, which was filed after the date fixed by the said Board of Revenue, was illegal. It was held that each and every industrialist who was affected on account of withdrawal of the notification mentoned above was entitled to one time 25% relief, therefore, the Division Bench of the High Court did not commit any illegality by directing the Board of Revenue to grant the said benefit to the respondent. The judgment impugned is in accordance with law declared by this Court in the case of Messrs Diamond (supra), therefore, it has followed the same correctly and no illegality has been committed.
4. For the foregoing reasons, this appeal has no merits which is accordingly dismissed.
5. The Board of Revenue is hereby directed to decide the application of the respondent within four weeks positively after the receipt of certified copy of this judgment and report compliance to the Registrar of this Court. .