P L D 2000 Lahore 458 (PLP)

This petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, calls in question the demand of the respondents for payment of Luxury Tax on Toyota Land Cruiser Prado Jeep levied by section 7 of the Punjab Finance Act, 1997.

2. Learned counsel for the petitioner has not challenged the validity of the levy, as such, his contention is that on the wording of section 7 the tax can only be levied on those vehicles which are registered in the Province of Punjab or are plying there. According to the learned counsel plying means being used on more or less permanent basis.

3. It may be stated that in a large number of cases, the validity of section 7 of the Punjab Finance Act, 1997 was challenged. However, all those petitions were dismissed by a learned Single Judge of this Court on 16th of April, 1999. Some of the aggrieved persons filed Intra‑Court Appeals, which came up for hearing before a Division Bench of this Court. In I.C.A. No.340/99 apart from other questions one of the dispute was with regard to the levy of taxes on the vehicles not registered in the Punjab but which were being used here. In that respect the learned Division Bench was pleased to observe that:‑ "

11. However, the apprehension of Mr. Ali Zafar, Advocate, as to the later part of the subsection (1) regarding the vehicles plying in Punjab has some force. We find that an undertaking was given to the learned Single Judge by the learned Advocate General which is reproduced in para.37 of the judgment under appeal. We may also note here that the learned Single Judge proceeded to declare Rules framed under the said section 7 vide Notification S.O. Tax‑ (Ext) 3 (17) (LV) dated 23‑4‑1998 as ultra vires. We called upon the learned Additional Advocate‑General as to how the Government proposes to enforce this later provision. The learned Additional Advocate‑General has produced the Rules proposed to be notified by the Provincial Government under the said section

7. Upon a .reading of the definition of the term 'owner' given in the said Rule, we are satisfied that only a bona fide resident of the Province or ‑a person carrying on a business or office established within the territory of the Province owning/keeping Luxury Vehicles is liable to pay the said tax. We also find that the Rules provide for service of notice and opportunity to show cause against the proposed levy. The provision of appeal ‑and revision has also been made, The learned Additional Advocate‑General assures that the levy will be made and collected in the manner prescribed in the Rules shown to us and copy whereof has been placed on file of this I. C. A." From the above it becomes clear that the tax payable only by a bona fide resident of the Province or by those persons who are carrying on business or have an office within the territory of Punjab, the vehicles which enter Punjab temporarily or in the transit, cannot be subjected to this levy.

4. Even wording of section 7 of the Punjab Finance Act, 1997, supports the contention being raised by the learned counsel for the petitioner. This section reads as under:‑‑ "Tax on luxury vehicles.‑‑‑(1) There shall be levied and collected a one time tax at the following rates on luxury vehicles manufactured abroad and registered in the Punjab after 30th of June, 1994 or registered after the said date outside the Punjab and plying in the Punjab:‑‑ (a) Mercedes Benz, BMW, Jaguar, Rolls Royce Car or cars of such other makes as may be notified by the Government:‑‑ (i) with engine capacity up to 2000 cc Rs.2,00,000. (ii) with engine capacity exceeding 2000 cc Rs.4,00,000. (b) Land Cruiser, Patrol, Pajero, Range Rover or any other luxury jeep and double cabin pick‑up with engine capacity of 2500 cc or above or such other makes as may be notified by the Government. (2) The tax shall be payable by the owner of the vehicle. (3) Any person who fails to pay the tax within the prescribed time limit shall in addition to the amount of the tax be liable to pay a penalty not exceeding the amount of the tax due. (4) Any amount of tax or penalty imposed which remains unpaid shall be recoverable as arrears of land revenue. (5) The Government may make rules for giving effect to the provisions of this section."

5. As is obvious from a bare reading of the above‑cited provision, the luxury tax is leviable on the luxury vehicles registered in the Punjab after 30th of June, 1994 or registered after the said date outside Punjab and are plying in the Punjab.. It needs to be emphasized that the vehicles registered outside Punjab are only liable to pay the luxury tax if those are plying in the Punjab. The word "plying" implies the use of more or less a regular basis and occasional use of the car would not be covered by it. In Webster's International Dictionary (Third Edition) one of the meaning assigned to the word "plying" is "to go or travel more or less regularly between usual specified points". Similarly, in Collins Gem English Dictionary (Major New C Edition) "plying" has been defined as "to travel regularly along or between". Consequently, if the vehicle which is registered outside Punjab is brought into the Province for temporary use occasionally, it would not amount to plying the vehicle in the Province of Punjab. There must be some sort of permanency attached to the use before it can be said to ply in the Punjab. This petition stands disposed of in the above terms. QA.H./M.A.K./M‑167/L Order accordingly