Sales Tax Act (IX of 1990)---

----S.71---Constitution of Pakistan (1973), Art. 199---Constitutional petition- Special procedure for Ginning Industries Rules, 1996, R.6 [as incorporated by S.R.O. No.820(1)/97, dated 23-9-1997]---Vires of R.6, Special Procedure for Ginning Industries Rules, 1996---Special Procedure was laid down by the Federal Government for levy and payment of sales tax on the ginning industries---Central Board of Revenue amended the Rules by incorporating R.6 therein---Validity---Nothing in Sales Tax Act, 1990 authorised Central Board of Revenue either to frame rules laying down special procedure or amend the rules framed by Federal Government-- Amendment in the Rules was ultra vires the power of the Central Board of Revenue and notification amending the rules was declared by High Court to be without lawful authority and of no legal effect.

Imtiaz Rashid Siddiqui and Imran Anjum Alvi for Petitioner.

A. Karim Malik for Respondents.

Date of hearing: 14th April, 1998.

JUDGMENT

This judgment shall dispose of Writ Petitions Nos.6694 of 1998, 6695 of 1998 and 712 of 1998 in all of which same controversy is involved.

2. In exercise of the powers conferred upon it by section 71 of the Sales Tax Act, 1990, the Federal Government had laid down special procedure for the levy and payment of sales tax on the ginning industries by framing the Special Procedure for Ginning Industry Rules, 1996 which were notified on 10-I1-1996. By subsequent notification bearing S.R.O. No.820(I)/97, dated 23-9-1997, the Central Board of Revenue purported to amend the aforesaid Rules by incorporating Rule 6. This amendment has been challenged in this petition, inter alia, on the ground that the Rules having been framed by the Federal Government, the same could only be amended by it and not the Central Board of Revenue.

3. The contention raised by the petitioner's learned counsel is unexceptionable. A reference to section 71 of the Sales Tax Act, 1990 shows that it is the Federal Government, which has been granted the power to prescribe special rules of the scope and payment of sales tax and other allied matters. There is nothing in the Sales Tax Act, 1990 which permits the Central Board of Revenue either to frame Rules laying down special procedure or amend the Rules framed by the Federal Government in that behalf. Even on general principle, it is the Authority, which had issued first notification or taken first decision, which can amend or vary the same. In this view of the matter, there is no option but to hold that the amendment in the Rules vide S.R.O. No.820(I)/97, dated 23-9-1997 is ultra vires the power of the Central Board of Revenue.

4. Mr. Imtiaz R. Siddiqui, learned counsel for the petitioner wanted to argue certain other points but as the petitions are liable to succeed on to ground of lack of power in the Central Board of Revenue to amend the Rules, I am not inclined to enter into any further controversy.

In view of above, these petitions are allowed and the impugned notification, dated 23-9-1997 is declared to be without any lawful authority and of no legal effect. No order as to costs.

A.A./A-323/LPetitions allowed