COLLECTOR OF SALES TAX VS MUHAMMAD TAHIR
2004 P T D 2217
[Supreme Court of Pakistan]
Present: Javed Iqbal, Tanvir Ahmed Khan and Faqir Muhammad Khokhar, JJ
COLLECTOR OF SALES TAX
Versus
MUHAMMAD TAHIR and others
Civil Petitions Nos.2951, 2952 and 3006‑L of 2002, decided on /01/.
th
February, 2003. (On appeal from the judgment/order dated 5‑4‑2002 of the Lahore High Court, Lahore, passed in Writ Petitions Nos.346 of 2002, 14403 of 2000 and 4857 of 2002).
Pakistan Water and Power Development Authority Act (XXXI of 1958)‑‑‑
‑‑‑‑Ss. 12, 13 & 25‑‑‑Levy and collection of sales tax by WAPDA on energy consumed by petitioner‑‑‑Constitutional petition under Art. 199 of the Constitution before High Court challenging such levy without impleading concerned Collector of Sales Tax as party‑‑ Maintainability‑‑Collector was a necessary party without whose implead ment controversy could not be resolved properly and effectively.
Izharul Haq, Advocate Supreme Court and Tanvir Ahmad, Advocate‑on‑Record for Petitioner.
Zia Haider Rizvi, Advocate Supreme Court and Ch. Mehdi Khan Mehtab, Advocate‑on‑Record (absent) for Respondents.
Date of hearing: 4th February, 2003.
ORDER
JAVED IQBAL, J.‑‑‑By this order we propose, to dispose of the above captioned petitions for leave to appeal which are directed against the judgment, dated' 5‑4‑2002 passed by the learned Single Judge in Chambers of the Lahore High Court, Lahore, whereby the writ petitions have been disposed of in the following terms:‑‑
"6In the said facts and circumstances both the writ petitions are disposed of with the direction that till such time the Ministry of Finance and Wapda work out the manner and made in which the matter of refund are to be implemented in terms of the said notification, dated 5‑1‑2000 in respect of all domestic, commercial arid agricultural consumers consuming less than 500 units, sales tax to the extent of 5 % of the total consumers utilizing the electricity through the petitioner Society shall be levied and recovered by Wapda from the petitioner Society. This shall, however, be subject to regular check by Wapda on the matter of further supplies of electricity by the petitioner to its said members including the consumers falling in the said category and Wapda shall be at liberty to adjust the bills in accordance with the results of the said inspection. After the decision had been taken by the Ministry of Finance and Wapda as to the modality of refund etc., the matter will be governed accordingly."
2. A bare perusal of the operative portion of the, judgment impugned as reproduced hereinabove would reveal that the controversy revolves around the levy and collection of tax which should have not been decided without impleading the Collector of Sales Tax concerned which admittedly is a necessary party without whose impleadment the controversy cannot be set at naught properly and effectively.
3. Mr. Zia Haider Rizvi, learned Advocate Supreme Court for caveators could not satisfy on the point that the dispute in question could have been resolved without impleading the Collector of Sales Tax as a party.
4. In sequel to the foregoing discussion these petitions are converted into appeal which are accepted by setting aside the judgment impugned with the direction to decide the matter afresh by impleading the Collector of Sales Tax and Central Excise Lahore as necessary party after affording proper opportunity of hearing to all concerned.
S.A.K./C-81/SAppeal accepted,