NOON SUGAR MILLS LIMITED, LAHORE VS PROVINCE OF PUNJAB through Secretary, Department of Finance Civil Secretariat, Lahore, 2007 PTD-LAHORE-HIGH-COURT-LAHORE 2304 (2007)

Punjab Finance Act (IX of 1997)---

----S.7---Constitution of Pakistan (1973), Art.199---Constitutional petition---Imposition of luxury tax on vehicle---Contentions of petitioner was that under S.7 of Punjab Finance Act, 1997 luxury tax was payable on foreign manufactured vehicles registered in the. Province after 30-6-1994; that vehicles subject to the tax were named brands of motorcars such as 4x4 vehicles that had engine capacity of 2500cc and above; and such other vehicles as were notified by the government; that his vehicle was not 4x4 vehicle, but a Sedan motor car, which was not notified by the government nor mentioned in paragraph (a) of S.7 of Punjab Finance Act, 1997 and as such, same was outside the ambit of, charging section of luxury tax---Held, tax liability in the case had been postponed since 1998 on account of fact that vehicle in question .was a Sedan car rather than a 4x4 Land Cruiser Jeep---High Court directed that the matter be determined by authorities on production of vehicle before the competent officer, who on inspection, shall assess and collect the leviable tax in accordance with, law within specified period.

Jawad Hassan for Petitioner.

Jawad Malik, A. A:-G. for Respondent??

ORDER

C. M. 21 of 2007

Application is supported by counsel's personal affidavit. Allowed. Writ petition restored to its original number, C.M. disposed of.

Main case:

2. This petition was filed to challenge the imposition of luxury tax by the provincial government on two vehicles belonging to the petitioner. Presently, the learned counsel does not press the petition in respect of a Pajero Jeep registered in the Province of Sindh. With regard to the other vehicle, he submits that it is a Sedan car bearing the description "Toyota High Land Crown". Under the provisions of section 7 of the Punjab Finance Act, 1997 luxury tax is payable on foreign manufactured vehicles registered in the province after 30-6-1994. Vehicles subject to the tax are named brands of motorcars, such 4x4 vehicles that have engine capacity of 2500-CC and above and such other makers of vehicles as are notified by the Government, Learned .counsel submits that as his vehicle is not a 4x4 vehicle but a Sedan motorcar which is not notified by the provincial government nor mentioned in paragraph (a) of section 7 ibid, therefore, the same is outside the ambit of the charging section of luxury tax.

3. The learned A.A.-G. has opposed the contention by referring to the registration book of the petitioner's vehicle which describes in handwritten Urdu the vehicle in question as Toyota Land Cruiser Jeep with engine capacity of 4200-CC. Therefore, the petitioner has no case whatsoever on facts. Assuming without admitting the petitioner's case to be correct he further submits that the charging provision contemplates the taxability of such other makers of cars that may be notified by the provincial government.

4. The learned counsel for the petitioner rests his case squarely on the point that subject-matter vehicle belonging to the petitioner is a Sedan car rather than a 4x4 Land Cruiser Jeep. The tax liability in this case has been postponed since 1998 on account of such a simple and .verifiable point of fact. Let the same be determined by the respondents within one week from the date of issuance of a certified copy of this order. The petitioner shall produce the subject-matter vehicle in question before the respondent No.2 for inspection. If it is indeed a 4x4 vehicle as claimed by respondent No.2, he shall assess and collect the leviable tax in accordance with law. Disposed of.

H.B.T./N-35/LOrder accordingly.