ISLAMABAD: The Constitutional Bench (CB) of the Supreme Court on Wednesday suspended the Peshawar High Court’s (PHC) verdict that had nullified the application of the Sales Tax Amendment Act in the former FATA (Federally Administered Tribal Areas) and PATA (Provincially Administered Tribal Areas) and reinstated the Act temporarily.
The five-member constitutional bench headed by Justice Aminuddin Khan pronounced the verdict while hearing appeals filed by the Ghee and Steel Mills Association.
The bench accepted the argument that the PHC had exceeded its jurisdiction and granted an interim stay, effectively restoring the sales tax law in the previously exempted tribal areas.
Previously, the Peshawar High Court had struck down the implementation of the Sales Tax Amendment Act in ex-FATA and PATA, declaring it unconstitutional.
The apex court also issued a stay order on the appeals filed by the association.
However, the CB now reversed that order, at least temporarily, and issued notices to all parties concerned for further proceedings.
Advocate Hafiz Ehsaan, representing the Ghee and Steel Mills Association, argued that the High Court can’t act as a substitute for the Parliament. He maintained that the PHC had overstepped its authority by granting relief beyond the scope of the original petition. “This case involves billions in tax revenues. The court cannot issue orders for customs clearance without legal backing,” he said.
The CB did not set a specific date for the next hearing, leaving the matter pending for an indefinite period. However, the temporary restoration of the Act allows the Federal Board of Revenue (FBR) to continue collection of sales tax from businesses operating in the ex-FATA and PATA regions, subject to final adjudication.
