Supply of electricity

2024 PTD 1335 PESHAWAR-HIGH-COURT Judicial Precedent

S.3 & Sixth Schedule, Entry No.152Notifications SRO 1212(I)/2018, dated 05-10-2018 and SRO 1213(I)/2018 dated 05-10-2018Constitution of Pakistan, Arts. 18 & 25Supply of electricityTax exemptionCut-off-dateDiscriminationPrinciple of intelligible differentiaApplicability

Petitioners/ industrialists were aggrieved of denial of exemption from taxes as their units were established after cut-off date of 31-05-2018

Validity

Allowing one set of industries concession in electricity supply i.e. exemption from sales tax and withholding such exemption from another group merely for the reason that it was setup after a particular date had serious effects on their earnings and they might in some circumstances would not be able to compete with each other

Such classification did not qualify test of intelligible differentia and was contrary to Arts. 25 and 18 of the Constitution

Law applying to one person or class of persons may be constitutionally valid if there is sufficient basis or reason for it, as there is always a presumption in favour of constitutionality of law made by Parliament or State legislature

Legislature is competent to classify persons or properties into categories and to subject them to different rates of taxes

Exception is that no one is to target incident of taxation in such a way that similarly placed persons are dealt with not only dissimilarly but discriminately

Through legislation in question, all Steel, Ghee and Cooking Oil industries were treated as a separate class and exemption was not extended to supplies of electricity, therefore, there was no element of discrimination in the matter

Provision of Entry No.152 in Sixth Schedule to Sales Tax Act, 1990, was ultra vires the Constitution to the extent of making classification among the industrial, residential and commercial consumers which were established after 31-05-2018

Exemption in supply of electricity was available to all residential, commercial and industrial consumers who had established their units in the Erstwhile FATA / PATA irrespective of date of establishment till the life of Entry No.152 in Sixth Schedule to Sales Tax Act, 1990, except Steel, Ghee or Cooking Oil Industries

Constitutional petition was disposed of accordingly.

2012 CLC 1738 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Ss. 42 & 54Electricity Act (IX of 1910), Ss. 22, 41, 43 & 44Pakistan Electric Power Regulatory Authority Ordinance (XLV of 1997), Ss.2(19) & 2(27)Constitution of Pakistan, Art.9Civil Procedure Code (V of 1908), O.XXXIX, Rr.1 & 2Suit for declaration and injunctionInterim injunction, grant ofSupply of electricityRight to life

Plaintiff-company owned two industrial plots and one of the plots an industrial unit was established and in the other electric generating unit was installed

Plea raised by plaintiff company was that it was a Captive Power Producer and authorities could not restrain supply of electricity from its one plot to the other

Validity

Supply of electricity was essential to life of people and its denial amounted to infringement of right to life guaranteed by Article 9 of the Constitution

If injunction was declined to plaintiff, no purpose would be served except enhancing unemployment, which was already very high in country

Plaintiff made out a prima facie case and balance of convenience was also in its favour, as great inconvenience would be caused to plaintiff in case of refusal

Electric Supply Company would not suffer any harm by providing electricity as it would be paid every month fixed charges irrespective of whether or not plaintiff used any electricity

Application was allowed accordingly.