2008 PLP 896 (CLC)

MUHAMMAD KHALID ALVI, J.

With the concurrence of learned counsel for the parties this case is being treated as a Pacca Case.

2. Through this constitutional petition petitioner has challenged a notice issued by respondent No.1 calling upon the petitioner to pay a sum of Rs.4,100 as a tax on dangerous and offensive trade. The petitioner allegedly runs the business of manufacturing of trunks and boxes etc.

3. It is submitted by the learned counsel for the petitioner that under section 137 of the Punjab Local Government Ordinance, 1979 a Local Council is empowered to levy tax enumerated in the Second Schedule of Ordinance. According to Part III of the Second Schedule the leviable taxes of the Urban Local Council are detailed in the said part of the schedule. The disputed tax i.e. dangerous and offensive trade tax is not listed, therefore, respondent Local Council has no authority to claim any such tax.

4. On the other hand, learned counsel for the respondent with reference to section 73 of the Ordinance contends that the Local councils have the jurisdiction to regulate the business of dangerous and offensive trade. Further submits that dangerous and offensive articles and trades are detailed in the First Schedule of the Ordinance and at Item No.21 the trade of the petitioner is detailed as "manufacturer of safes, trunks and boxes", therefore, the business of the petitioner is within the mischief of dangerous and offensive trade, thus, he is liable to pay the requisite tax. Further submits that according to Second Schedule, Part III, Item No.16 is the relevant item which covers the impugned tax.

5. I have considered the arguments of the learned counsel for the parties.

6. There is no denying the fact that a Local Council had the authority to levy tax enumerated in the Second Schedule. Respondent undeniably is Urban Local Council, therefore, according to part III is competent to levy taxes mentioned in the said Part. Item No.16 referred by the learned counsel for the respondent is "tax on professions, trades, callings and employment". This item does not relate exclusively with respect to dangerous or offensive trade. It is general item relating to all general items, trades etc.

7. Under section 73 of the Ordinance, the Local Councils can regulate the dangerous and offensive articles and trades by means of issuance of licence putting restrictions on its movement, keeping, quantity, quality etc. but certainly no tax is provided for such a dangerous or offensive trade.

8. Tax being a compulsory levy has to be construed very strictly, merely by implication or commonality by certain words a citizen cannot be burdened with tax.

9. For what has been stated above, this writ petition is allowed, resultantly, the impugned notice issued by respondent No.1 is declared to be illegal and without lawful authority. No order as to costs. H.B.T./M-55/L Petition allowed.