PAKISTAN STOCK EXCHANGE LIMITED vs PROVINCE OF SINDH through Secretary, Ministry of Finance Fourth Schedule

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PAKISTAN STOCK EXCHANGE LIMITED VS PROVINCE OF SINDH through Secretary, Ministry of Finance Fourth Schedule---Federal Legislative List---Scope---Federal Legislative List as appearing in Fourth Schedule to the Constitution clearly demarcates and distributes the legislative powers between Provincial and Federal Legislatures---Entries in Federal Legislative List indicate subjects as long as it does not transgress or encroach upon power of other legislature---Entries in Federal Legislative List catalogue legislative powers and domain which has been given in these Articles---All entries are to be read by articulating them with the words "subject to the Constitution"---To understand width and amplitude of subject matter mentioned against each entry and to see whether it covers subject matter of taxation or not, the entry in question cannot be read as standalone---One has to see extent or limitation imposed by some other provisions of the Constitution or other entries in Federal Legislative List as they are also part of the Constitution. Citation Name: 2024 CLD 580 KARACHI-HIGH-COURT-SINDH PAKISTAN STOCK EXCHANGE LIMITED VS PROVINCE OF SINDH through Secretary, Ministry of Finance Preamble---Object, purpose and scope---Provision of Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012, is not a law for establishment or creation of authority as it merely provides enabling provision for conversion of a company limited by guarantee to a company limited by shares---Provision of Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012, provides an easy way for amalgamation and integration without undergoing hassle of recourse available under Company law available at the relevant time. Citation Name: 2024 CLD 580 KARACHI-HIGH-COURT-SINDH PAKISTAN STOCK EXCHANGE LIMITED VS PROVINCE OF SINDH through Secretary, Ministry of Finance S. 23---Constitution of Pakistan, Fourth Schedule---Federal entity---Show-cause notice---Pakistan Stock Exchange Limited---Income from listing fee and exchange operations---Petitioner / Pakistan Stock Exchange Limited assailed show-cause notice issued under S. 23 of Sindh Sales Tax on Services Act, 2011, by respondent / Sindh Revenue Board for recovery of defaulted tax amount on petitioner's income arising from listing fee and exchange operation earned by it---Plea raised by petitioner was that respondent / Sindh Revenue Board could not influence or exert their provincial executive authority over petitioner since it was a body created in pursuance of subjects enumerated in Fourth Schedule to the Constitution having Federal Legislative domain---Validity---Scheme of legislative entries in Fourth Schedule to the Constitution regarding taxation is such that taxes on income, sales tax on purchase and sales of goods, duties of customs and excise etc. fall in the domain of Federation---Federal Legislature has no power to legislate in respect of sales tax on services even regarding those subject matters which are enumerated in Federal Legislative List to the Constitution, subject to strict trans-provincial application(Entry 3 and 13 of Federal Legislative List not pressed by petitioner)---Entry 49 enjoys a unique position as it shifts taxing power (for services) from the Federation to the Provinces and it recognizes scope and extent of the powers and creates a reconciled balance, which allows Federation and Provinces to operate in their own fields in harmony---High Court declined to interfere in show-cause notices in question as the same were issued having authority and legislative competence in such regard---Petitioner had already registered itself voluntarily with respondent / Sindh Revenue Board earlier and if any issues of "adjudication" and not competence, were raised or agitated by the petitioner, the same could be addressed by the authority concerned by issuing show-cause notices---Constitutional petition was dismissed, in circumstances.

PAKISTAN STOCK EXCHANGE LIMITED vs PROVINCE OF SINDH through Secretary, Ministry of Finance Fourth Schedule — 2024 CLD 580 KARACHI-HIGH-COURT-SINDH

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