ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-5961 of 2022

_____________________________________________________________________ Date Order with signature of Judge

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FRESH CASE:

1. For order on CMA No.25239/2022 (Urgent).

2. For order on CMA No.25240/2022 (Exemption).

3. For order on CMA No.25241/2022 (Stay).

4. For hearing of main case.

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Dated; 5^th October 2022

Mr. Ali Almani, Advocate for Petitioner.

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1. Urgency granted.

2. Exemption granted subject to all just exceptions.

3&4. Through instant Constitutional Petition, the petitioner has impugned the vires of the Sindh Sales Tax on Services (Amendment) Act, 2018, whereby, amendment has been made in Section 4, Sub Section (2) Clause (b), and such amendment has been given retrospective effect, while amending the provision of Section 84 of the Sindh Sales Tax on Services Act, 2011. According to learned counsel for the petitioner, such amendments have been inserted to nullify the judgment of the Divisional Bench of this Court passed in Const. Petition No.D-2421 of 2016 (alongwith several others) in the case of Young’s (Private) Limited and others v. Province of Sindh and others, whereby, it has been declared that the renting of immovable property does not involve any economic activity, hence cannot be taxed under the Sindh Sales Tax on Services Act, 2011. Per learned counsel, petitioner has been issued two invoices for rent by the landlord, in which the Sindh Sales Tax at the rate of 3% of the amount of rent/maintenance has been included pursuant to impugned Amendment through Sindh Finance Act, 2018. Per learned counsel, similar petitions on the subject controversy, including C.P. No.D-7447/2018 in the case of MSC Agency Pakistan (Pvt.) Limited vs. Sindh and others, are already pending before this Court, which are fixed for hearing on 01.11.2022, wherein, interim relief has been granted to the petitioner vide order dated 23.10.2018, copy of such order has been placed on record.

Let pre-admission notices be issued to the respondents as well as to the Advocate-General, Sindh under Order XXVII-A, C.P.C., to be served through first three modes, for 01.11.2022, when instant petition may be taken up alongwith aforesaid C.P. No.D-7447/2018 and other connected petitions, whereas, comments, if any, shall be filed with advance copy to the learned counsel for the petitioner. However, till next date of hearing, respondents shall not take any adverse action against the petitioner pursuant to the impugned amendment and the invoices issued by the respondent No.3 by including 3% tax.

J U D G E

*Farhan/PS*