COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE, ISLAMABAD vs PAKISTAN OILFIELDS LTD

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COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE, ISLAMABAD VS PAKISTAN OILFIELDS LTD., RAWALPINDI S. 4C [as amended by the Finance Act 2023]---Constitution of Pakistan, Art. 199(4)---Supertax under Section 4C of the Income Tax Ordinance, 2001---Recovery of---High Court granting interim relief against collection of super tax---Constitutionality---Violation of the constitutional requirement of granting interim relief under Article 199(4) of the Constitution---Plain reading of Article 199(4) of the Constitution shows that where the making of an interim order would have the effect of impeding the assessment or collection of public revenues, the High Court shall not make an interim order unless: (i) the prescribed law officer has been given notice of the application for interim relief and he or any person authorized has had an opportunity of being heard; and (ii) the High Court, for reasons to be recorded in writing, is satisfied that the interim order would have the effect of suspending an order or proceeding which on the face of the record is without jurisdiction---Use of the negative language, i.e., "shall not", in Article 199(4) leaves no doubt that its provisions are mandatory and an interim order passed without adhering to the procedure provided therein will be illegal and without jurisdiction---In the present case, it is an admitted fact that the High Court did not give notice of the application for interim relief and provide an opportunity of hearing to the prescribed law officer, i.e., the Attorney-General, nor did the High Court record its finding, and the reasons therefor, that the interim order would have the effect of suspending an order or proceeding which on the face of the record is without jurisdiction---Both the mandatory requirements of Article 199(4) were not complied with by the High Court in making the impugned orders, which failure makes these orders illegal and without jurisdiction---Present case, thus, involves a flagrant violation of law and a clear wrongful exercise of jurisdiction, which warrants interference by the Supreme Court in the impugned interim order---Petitions were converted into appeals and allowed; the impugned orders were set aside with the directions that the respondents' (tax payers') applications for interim relief shall be decided by the High Court after affording a fair and reasonable opportunity of hearing as envisaged under Article 199(4) of the Constitution; that the High Court shall also identify the order or proceedings under challenge in terms of Article 199(4)(b)(ii) of the Constitution; that the High Court will also attend to the other contention of the counsel for the petitioner (tax department) regarding suspension of legislation through an interim order in the light of the law cited by her.

COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE, ISLAMABAD vs PAKISTAN OILFIELDS LTD — 2024 PTD 1085 SUPREME-COURT

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