TAJ VEGETABLE OIL PROCESSING UNIT (PVT.) LTD. vs FEDERATION OF PAKISTAN through Federal Secretary Finance and

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TAJ VEGETABLE OIL PROCESSING UNIT (PVT.) LTD. VS FEDERATION OF PAKISTAN through Federal Secretary Finance and Revenue Division, Islamabad Ss. 3, 7 & Sixth Schedule, Entry No.151---Constitution of Pakistan, Arts. 23, 24 & 25---Business Operating in erstwhile trial areas---Exemption from sales tax---Sales tax regime, modification in---Condition of depositing payment order---Legality---Petitioners / companies were aggrieved of imposing condition of deposit of payment order as security against import of raw material to the value of amount of leviable duties and taxes---Validity---Imposition of condition, providing payment order at the time of clearance of goods for an amount equivalent to sales tax was negation of exemption, which was granted to petitioners / companies keeping in view their geographical locations as well as business activities---Petitioners/ companies, consuming raw materials imported through concessionary regime, were not liable to pay any tax---Petitioners / companies were not prohibited from selling their product outside erstwhile tribal area on payment of sales tax---Such activities were subject to assessment regime, as provided under Sales Tax Act, 1990---Condition of payment order, equal to amount of sales tax at the time of import would revert the exemption into payment of sales tax regime as provided under S. 3 of Sales Tax Act, 1990 and its adjustment as provided under S. 7 of Sales Tax Act, 1990 with the slight modification that, instead of input tax (in cash), the form would be changed to payment order---High Court declared that demand of payment order from business community belonging to erstwhile tribal areas was unreasonable condition depriving them to utilize their money for business activities which otherwise would also offend mandate of Arts. 23 & 24 of the Constitution---High Court further declared that amendment in Entry No. 151 of Sixth Schedule to Sales Tax Act, 1990 did not qualify test of reasonableness, as it was discriminatory and ultra vires the mandates of Arts. 18, 23, 24 & 25 of the Constitution---High Court in exercise of Constitutional jurisdiction struck down amendment in question and allowed petitioners to import raw material and machinery etc. against providing postdated cheques equal to the amount of sales tax---High Court directed the authorities to return instruments of payment orders already deposited with them against postdated cheques provided by petitioners---Constitutional petition was allowed accordingly.

TAJ VEGETABLE OIL PROCESSING UNIT (PVT.) LTD. vs FEDERATION OF PAKISTAN through Federal Secretary Finance and Revenue Division, Islamabad Ss — 2025 PTD 399 PESHAWAR-HIGH-COURT

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