ISLAMABAD – The Supreme Court of Pakistan on Tuesday reinstated the Sales Tax Amendment Act in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), suspending a previous verdict of the Peshawar High Court that had declared the legislation null and void.
A SC five-member constitutional bench headed by Justice Aminuddin Khan issued a stay order while hearing appeals filed by the Ghee and Steel Mills Association against the high court’s decision.
The bench also issued notices to the relevant parties and adjourned further proceedings indefinitely.
Earlier, the Peshawar High Court had struck down the Sales Tax Amendment Act, prompting the legal challenges from industrial stakeholders operating in the region.
During the hearing, Hafiz Ehsan, counsel for the Ghee and Steel Mills Association, argued that the high court had exceeded its jurisdiction by granting relief beyond the scope of the original petition. He contended that a court cannot function as a substitute for Parliament and that the ruling involved billions of rupees in tax implications.
He further noted that the Peshawar High Court had improperly directed the issuance of cheques in contradiction to existing legal provisions and that, under the law, customs clearance in FATA and PATA required specific tax-related orders.
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