Const. Petition No.D-1627 of 2012
Present
Mr. Justice Aqeel Ahmed Abbasi.
Mr. Justice Muhammad Junaid Ghaffar.
Pakistan Petroleum Limited……………………………………………Petitioner
Versus
Federation of Pakistan and others. ……………………………...…….Respondents
Date of hearing 26.09.2013
Date of order 26.09.2013
M/s Makhdoom Ali Khan and Mohammad Najeeb Jamali, advocates for the petitioner.
Mr. Patras Piyara, advocate for the respondent Nos.8 and 21.
Mr. Mansoor Ahmed Shaikh, advocate for respondent No.16.
Mr. Kashif Hanif, advocate for respondent No.18
Mr. Ishtiaq A. Memon, advocate for respondents No.12, 20 and 23.
Mr. S. Mohsin Imam, DAG
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Aqeel Ahmed Abbasi, J : Through instant petition, the petitioner has impugned the demand notice dated 23.04.2012 issued by the respondent for the recovery of outstanding demand against the petitioner for the tax year 2003 to 2009.
2. Learned counsel for the petitioner has contended that the impugned demand notice purported to have been issued for the recovery of outstanding arrears amounting to Rs.3,431,152,570/-for the tax years 2003 to 2009 in violation of the orders passed by this Court in C.P.Nos.D-466/2009 and 476/2009 pertaining to tax years 2003 to 2007 and C.P.Nos.D-1589/2010 and 1590/2010 pertaining to tax years 2008 and 2009, whereby after having received payment of substantial amount towards tax demand for the aforesaid tax years the department agreed not to press the recovery of the arrears of demand till disposal of the appeals by the Appellate Tribunal and the disposal of references by this Court, whereafter, by consent of the respondent, the aforesaid petitions were disposed of accordingly. Learned counsel for the petitioner in this regard has referred to the order dated 21.04.2009 passed in C.P.Nos.D-466/2009 and 476/2009 and the order dated 04.06.2010 passed in C.P. No.D-1589, 1590, 1650 and 1649/2010 by Divisional Bench of this Court, which have been annexed along with the instant petition. Learned counsel for the petitioner has also drawn our attention to paragraph 4 of the impugned notice and submitted that the respondent, under a mistaken notion and by misinterpreting the provision of Article 199 (4A) of the Constitution of Islamic Republic of Pakistan, 1973, have attempted to equate the interim orders granting stay of tax demand, which according to counsel for the respondents do not hold field after expiry of six months, with the final disposal of the constitution petition. Per learned counsel, respondents were restrained from collecting the arrears of balance demand till disposal of the appeals before the Tribunal and the references before this Court for the tax years under dispute. Learned counsel for the petitioner has readout the Article 199 (4A) of the Constitution and submits that the said provision only talks about the interim orders passed by this Court while exercising its constitutional jurisdiction and does cater to the stay of demand, if any, through final decision. Per learned counsel, the orders passed by this Court were consent orders which the respondents are willing to violate by mis-interpreting the provisions of Article 199 (4A) of the Constitution, pressing the arrear demand, which is subject matter of the appeals before the Tribunal and references before this Court. Learned counsel for the petitioner has also referred to the contents of paragraph 15 of the comments filed on behalf of the respondent No.4, wherein, the respondent has categorically stated that “no coercive action for recovery of impugned tax was taken and the apprehension of the petitioner is unwarranted.” Per learned counsel, if the respondent will not take any coercive action for the recovery of the impugned demand and will abide by the directions of this Court as contained in the orders passed in the aforementioned petitions, the petitioner would be satisfied and will not press the instant petition.
3. While confronted with such factual and legal position as stated by the learned counsel for the petitioner, all the learned counsel for the respondents could not controvert the same and candidly stated that provision of Article 199 (4A) of the Constitution, relate to only interim orders passed by this Court granting stay of impugned demand of public revenue, and does not relate to final order/judgment. It has been stated that the respondents will not proceed to recover the impugned outstanding arrears and will approach the learned Tribunal and this Court for an early disposal of the appeals/references, which are pending, however, it has been stated that the counsel for the petitioner may be directed not to seek unnecessary adjournments in this regard and proceed with the matter diligently. Learned counsel for the petitioner does not oppose such proposition and states that neither any adjournment has been sought by the petitioner nor the petitioner intends to delay the disposal of the appeals/references.
4. We have heard the learned counsel for the parties, perused the orders passed by Division Benches of this Court as referred to hereinabove and also examined the provisions of Article 199 (4A) , which only relate to interim orders passed by High Court to stay the assessment or collection of public revenues, which according to the respondents, cease to have effect on the expiration of a period of six months following the day on which it is made, however, it does not relate, in any manner, to the final orders or judgment passed by this Court under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973. In view of hereinabove legal position duly acknowledged by the learned counsel for all the respondents instant petition is disposed of with the directions to the respondents to abide by the orders passed by this Court in the aforementioned Const. Petitions in letter and spirit and do not press the recovery of the balance impugned demand till decision of the appeals/references pending before the Tribunal and this Court respectively for the tax years 2003 to 2009 as referred to hereinabove.
Accordingly, instant petition stands disposed of in above terms alongwith listed application.
J U D G E
J U D G E
Nadeem