ORDER SHEET

IN THE HIGH COURT OF SINDH, KARACHI

Constitutional Petition No.D-1328 of 2009

Present

Mr. Justice Aqeel Ahmed Abbasi

Mr. Justice Abdul Maalik Gaddi

Date of hearing : 28.05.2014

Date of order : 28.05.2014

Petitioner : Pakistan Cricket Board through

Mr. Mazhar Jafri, advocate.

Respondents : Director/District Officer Property and

Entertainment Tax City District Govt.

Karachi through Mr. Saifullah, AAG

O R D E R

Aqeel Ahmed Abbasi, J Through instant petition, the petitioner i.e. Pakistan Cricket Board, has impugned the order passed by the Director General, Excise and Taxation Sindh Karachi, on revision application No.10/2008 filed by the petitioner against the order dated 17.11.2008, passed by the Director/District Officer (Property & Entertainment Tax) CDG, Karachi, whereby, the claim of the petitioner seeking exemption from payment of entertainment duty was declined.

2. Learned counsel for the petitioner submits that the impugned order does not contain any valid reasons and has been passed in summery manner and the same has been passed in violation of Section 24-A of the General Clauses Act. It has been contended by the learned counsel for the petitioner that the petitioner is a Sports Organization established by the Federal Government under the Sports (Development and Control) Ordinance, 1962 (XVI of 1962) and is being run under the control and supervision of the Government of Pakistan. Per learned counsel, on several occasions in the past the Excise & Taxation Department has allowed exemption to the petitioner from payment of Entertainment Duty under Section 8 of the Sindh Entertainment Duty Act, 1958. Per learned counsel, the petitioner board organizes matches to promote sports activities in the city and the income generated from such matches is being spent only for the promotion of sports, hence entitled to exemption from payment of entertainment duty, which has been wrongly claimed by the Director General, Excise and Taxation Sindh Karachi, in an arbitrary and summery manner. Learned counsel has prayed that the impugned order may be set-aside and the claim of exemption of the petitioner from payment of entertainment duty may be accepted.

3. Conversely, learned AAG submits that as far as the order passed by the Director/District Officer (Property and Entertainment Tax) refusing the claim of the petitioner is concerned, it contains the valid reasons, however, he has candidly not supported the impugned order passed by the Director General, Excise and Taxation Sindh Karachi, in the instant case, as according to learned AAG it does not contain any valid reasons. However, it has been contended that the claim of exemption may not be entertained by this Court under Article 199 of the Constitution, however, the impugned order may be set aside and the matter may be remanded back to the Director General, Excise and Taxation Sindh, Karachi, who may decide the matter afresh by passing a detailed order on the claim of the petitioner.

4. We have heard the learned counsel for the petitioner as well as learned AAG, perused the record and the impugned order passed by the Director General, Excise and Taxation Sindh Karachi, in Revision Application No.10 of 2008, whereby, the claim of exemption filed by the petitioner from payment of entertainment duty has been declined. In view of candid statement of learned AAG, accepting the contention of the learned counsel for the petitioner to the effect that no valid reasons whatsoever have been given by the Director General, Excise and Taxation Sindh Karachi, in the impugned order, while declining the claim of exemption, we abstain from recording a detailed finding with regard to the validity of the claim of exemption in terms of Section 8 of the Sindh Entertainments Duty Act, 1958 However, from perusal of the impugned order passed in the instant case by Director General, Excise and Taxation Sindh Karachi, it is manifest that no valid reasons whatsoever have been given by the Director General, Excise and Taxation Sindh Karachi, while declining the claim of the petitioner regarding exemption from payment of entertainment duty in terms of sub-section (1) of Section 8, on the contrary he has only referred to the exemption, which were earlier granted to the petitioner by the Government in terms of subsection (2) of Section 8, hence misdirected himself by observing that the petitioner may approach the Government of Sindh for seeking exemption under Section 8 of the Entertainments Duty Act, 1958. We may clarify that the claim of exemption in terms of subsection (1) of Section 8 can be filed before the concerned Collector, who has to decide the same keeping in view the requirement of law as provided under subsection (1) of Section 8 of the Entertainments Act, 1958, provided he is satisfied that whole of the net proceeds of the entertainment will be devoted to philanthropic, charitable, educational, athletics, sports, national or scientific purposes. This claim of exemption as provided in terms of subsection (1) of Section 8 of the Act, 1958 is different and distinguishable from the authority vested in the Government in terms of subsection (2) of Section 8 of the Act, 1958, whereby the Government by general or special order may exempt from any entertainment or class of entertainments from liability to entertainments duty.

5. Accordingly, the impugned order passed on 10.10.2009 by the Director General, Excise and Taxation Sindh, Karachi, is hereby set-aside and the matter is remanded back to the Director General, Excise and Taxation Sindh Karachi, to decide the revision application of the petitioner afresh after providing complete opportunity of being heard to the petitioner keeping in view the observations of this Court as recorded hereinabove in terms of Section 8 (1) of Entertainments Duty Act, 1958 and the relevant Rules, which may be applicable in the instant case, whereafter a well-reasoned order shall be passed preferably within a period of four weeks from the date of receipt of this order.

Petition stands disposed of alongwith listed application in the aforesaid terms.

J U D G E