KARACHI: A divisional bench of High Court of Sindh (SHC) comprising Justice Munib Akhtar and Justice Abdul Mali Gaddi hearing 28 identical petitions against levy of Federal Excise Duty and Provincial tax on services simultaneously adjourned proceedings until March 22 after hearing issues involving constitutional provisions.
Former judge SHC Shaiq Usmani supported the legislative power of the federal government and said in the presence of a federal law, province cannot legislate or levy any service tax. He pointed out that ports and shipping and related activities are a federal subject.
The counsel for petitioner in petition 1482/2015 submitted that after 18 th amendment, all powers to levy any charge or tax on services vest into provincial government. The bench later putting of further arguments treated the petitions as “Part heard” and said that from march 22 day-to-day hearing will be held till decision in the petitions.
The petitioners include American President Lines (APL), MAERSK, Pakistan International Freight of Forward, Pakistan Ship Agents and others citing federal government, FBR, SRP and government of Sindh as respondents.