JAFFER IMAM vs FEDERATION OF PAKISTAN through Secretary Revenue Division S

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JAFFER IMAM VS FEDERATION OF PAKISTAN through Secretary Revenue Division S.3---SRO No. 1222(I)/2021 dated 17.09.2021---SRO No. 509(I)/2013 dated 12.06.2013---Persons who had not obtained Sales Tax Registration---Extra / further tax, levy of---Scope---Petitioners (taxpayers running charitable institutions, hospitals, schools or some other kind of business) impugned SRO No 1222(I)/2021 dated 17.09.2021 superseding an earlier SRO No. 509(I)/2013 dated 12.06.2013) whereby, an extra tax had been levied on the billed amount on supplies of electric power and natural gas to persons having industrial and commercial connection, who had either not obtained Sales Tax Registration or were not on the Active Tax-Payers list---Case of the petitioners was that they were not engaged in any taxable supplies or engaged in making exempt supplies, nor were they required to be registered under the Sales Act, 1990---Validity---Admittedly, the petitioner approached the High Court and availed ad-interim orders, primarily, following the judgment in the case reported as 2018 PTD 1600 titled Al-Zarina Glass Industries v. Federation of Pakistan (Al-Zarina Glass case) wherein the predecessor SRO 509(I)/2013 dated 12.06.2013 was impugned, and the controversy was decided in favour of the tax payers, however, the Civil Appeal (The Chief Commissioner (IR) Region v. M/s Al Zarina Glass Industries) filed by the Department against said judgment had been allowed by the Supreme Court---Thus, there was no reason to entertain any such further ground(s) as primarily the petitioners case was dependent on Al Zarina Glass Industries case leaving no justification to entertain ground(s) as the Supreme Court had now finally decided the issue---Pertinently, the extra tax under S. 3(5) of the Sales Act, 1990, had been levied on supply of electric power and natural gas; which was in addition to the tax levied under S. 3(1) of the Sales Tax Act, 1990---It was not on the activity or business of the Petitioners from which any exemption could be claimed on the ground that they were not engaged in any taxable activity---It is just like a tax on the consumer who avails any service or buys any goods and has to pay such tax---At times, the said tax is neither refundable nor adjustable but this in and of itself is not a ground to declare it as illegal---Constitutional petitions were dismissed, in circumstances.

JAFFER IMAM vs FEDERATION OF PAKISTAN through Secretary Revenue Division S — 2025 PTD 618 KARACHI-HIGH-COURT-SINDH

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