SHELL PAKISTAN LIMITED, KARACHI vs CAPITAL DEVELOPMENT AUTHORITY through Chairman, Islamabad Ss

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SHELL PAKISTAN LIMITED, KARACHI VS CAPITAL DEVELOPMENT AUTHORITY through Chairman, Islamabad Ss. 15-a & 51---Municipal administration Ordinance (X of 1960), S. 33---Islamabad (Control of advertisements) Regulations, 1977, Reglns. 9(3) & 14--- Notification S.R.O. 1022(I)/2014, dated 12.11.2014---Charges for advertisements---Recovery notices---appellant company was aggrieved of demand notices issued by Capital Development authority (CDa), National Highway authority (NHa), Union Councils and Metropolitan Corporation of Islamabad (MCI) for advertisement charges by way of signboards, billboards, hoardings, etc.---Validity---advertisement charges were not qualified as taxes under Islamabad (Control of advertisements) Regulations, 1977, revised in year 2008 and notification S.R.O. 1022(I)/2014, dated 12.11.2014, which were void ab initio for non-compliance with mandatory conditions stipulated in S. 15-a of Capital Development authority Ordinance, 1960 read with S. 33 of Municipal administration Ordinance, 1960, for imposition of taxes---Increase in advertisement rates was not justified as fee and Islamabad (Control of advertisements) Regulations, 1977, revised in year 2008 and notification S.R.O. 1022(I)/2014, dated 12.11.2014 were declared to be illegal for falling foul of quid pro quo principle for charging of fees by statutory bodies, given the rationale expressed in Regln. 14 of Islamabad (Control of advertisements) Regulations, 1977, itself as a general increase in revenue instead of an increase in the cost of service, and given exorbitant increase in advertisement rates without any foundational basis demonstrated by CDa or MCI identifying its "cost center" for regulation of advertisement activity--- Provisions of Islamabad (Control of advertisements) Regulations, 1977 in their original formulation were valid as were in furtherance of the power to make regulations under S. 51 of Capital Development authority Ordinance, 1960 in furtherance of its municipal functions---CDa or MCI, as the case may be, might have revised advertisement rates, provided that, rates of fee must bear an objectively demonstrable direct correlation to cost of administration of Islamabad (Control of advertisements) Regulations, 1977--- Cost center mathematical exactitude was not required but wide margin beyond demonstrated cost of regulation could not be valid---MCI's/Union Councils' demands for advertisement rates were illegal and were set aside for failing to comply with preconditions stipulated in Islamabad Local Government act, 2015 for the validity of tax---Division Bench of High Court directed respondents to return payments made under protest and bank guarantees to respective appellants/petitioners, who deposited them under protest---Intra Court appeal was allowed accordingly.

SHELL PAKISTAN LIMITED, KARACHI vs CAPITAL DEVELOPMENT AUTHORITY through Chairman, Islamabad Ss — 2024 MLD 261 ISLAMABAD

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