IN THE SUPREME COURT OF PAKISTAN 
(Appellate Jurisdiction) 
 
 
 
PRESENT: 
 
Mr. Justice Iftikhar Muhammad Chaudhry, CJ 
Mr. Justice Ijaz Ahmed Chaudhry 
Mr. Justice Iqbal Hameedur Rahman 
 
 
 
 
 
Constitution Petition No.33 & 34 of 2005 
(Regarding sudden increase in petroleum products on 
13.06.2013 due to increase in sales tax) 
 
And Civil Misc. Application No.3821 of 2013 
 
 
Engineer Iqbal Zafar Jhagra 
Senator Rukhsana Zuberi 
…Petitioners 
Versus 
 
 
Federation of Pakistan and others 
…Respondents 
 
 
For the petitioners: 
 
Mr. M. Ikram Ch. ASC 
 
 
 
 
 
(in Constitution Petition No.33/05) 
 
 
 
 
 
 
Nemo (in Cons.P.34/05) 
 
 
For the Federation: 
 
Mr. Munir A Malik, 
Attorney General for Pakistan 
 
 
 
 
 
Assisted by: 
 
 
 
 
 
Mr. Faisal Siddiqui, Adv. 
 
 
 
 
 
Mr. Dil Mohammad Alizai, DAG 
 
 
 
 
 
Raja Abdul Ghafoor, AOR 
 
 
For FBR: 
 
 
 
Dr. Rana M. Shamim, ASC 
 
 
 
 
 
Mr. Arshad Ali Chaudhry, AOR 
 
 
 
 
 
Mr. Muhammad Aaqil, Member (Legal) 
 
 
 
 
 
Mr. Raza Baqir, Member  
 
 
 
 
 
Mr. Ashfaq Tunio, Chief Sale Tax 
 
For OGRA:  
 
 
Mr. Salman Akram Raja, ASC 
Const.P.33-34/05 
2 
 
 
 
 
 
Mr. Saeed Ahmad Khan, Chairman 
 
 
 
 
 
Mr. Abdul Basit, Law Officer 
 
 
 
 
 
Ms. Misbah Yaqoob, JED(F) 
 
 
For M/o Petroleum: 
 
Ch. Akhtar Ali, AOR 
 
For M/o Finance:  
 
Nemo 
 
For M/o Climate Change: 
Mr. Dilawar Khan, Dy. Director 
 
For OCAC:  
 
 
Nemo 
 
 
Date of hearing:  
 
19/20/21.06.2013  
 
 
ORDER 
 
Iftikhar Muhammad Chaudhry, CJ.— For the reasons to be 
recorded later, it is declared and held as under: -  
(i) 
The Government is not authorized to impose or increase 
Sales Tax from 16% to 17% on the value of taxable 
supplies, i.e. by inserting in the Finance Bill (Money Bill) 
2013-14 a declaration under section 3 of the Provisional 
Collection of Taxes Act, 1931 [hereinafter referred to as 
‘the Act, 1931’] as such declaration neither has the status 
of legislation nor sub-legislation, therefore, it has no force 
of law. 
AND 
Immediate recovery of Sales Tax from 16% to 17% on the 
value 
of 
taxable 
supplies 
w.e.f. 
13.06.2013 
is 
unconstitutional being contrary to Articles 3, 9, 24 and 77 
of the Constitution; 
(ii) 
Under proviso to rule 20(2)(c) of the Sales Tax Special 
Procedures Rules, 2007, 9% in addition to the Sales Tax 
Const.P.33-34/05 
3 
prescribed under section 3 of the Sales Tax Act, 1990 
imposed or recovered from the consumers on CNG is 
unconstitutional and contrary to Articles 3, 9, 24 and 77 of 
the Constitution as well as section 3 of the Sales Tax Act;  
(iii) 
Section 4 of the Act, 1931 as a whole is declared 
unconstitutional being contrary to Article 70 of the 
Constitution, 
which 
lays 
down 
the 
procedure 
for 
legislation;  
(iv) 
Section 5 of the Act, 1931 does not lay down parameters 
for the purpose of refund of the recovered taxes to the 
consumers, 
as 
such, in 
absence of 
any 
workable 
mechanism, it is not enforceable in its present form; 
(v) 
As a consequence of above declaration, the Federal 
Government has no lawful authority to levy, impose and 
recover Sales Tax @ 17% from 13.06.2013 on the value of 
taxable supplies made in course or furtherance of any 
taxable activity until passing of the Finance Bill (Money 
Bill) 2013-14, which has already been tabled before the 
Majlis-e-Shoora;  
(vi) 
The excess amount equal to 1% (17%-16%) of the Sales 
Tax recovered on the petroleum products/CNG or any 
other taxable supplies w.e.f. 13.06.2013 onwards, thus is 
refundable 
to 
consumers 
and 
concerned 
authorities 
accordingly are directed to deposit it with the Registrar of 
this Court subject to passing of the Finance Bill (Money 
Const.P.33-34/05 
4 
Bill) 2013-14 by or under the authority of the Majlis-e-
Shoora;  
If the Sales Tax is imposed by the Majlis-e-Shoora to be 
recovered with retrospective effect, same shall be paid to 
the Government, otherwise appropriate orders will be 
passed for its disbursement; 
(vii) 
The Government is also directed to deposit 9% out of 26% 
of the Sale Tax on CNG as per notification dated 
13.06.2013 in the same manner as it has been noted 
above; 
(viii) 
A statement shall also be filed by the Government showing 
the amount of Sales Tax recovered @ 9% under proviso to 
rule 20(2)(c) of the aforesaid rules 2007 on value of the 
CNG from the consumers in addition to declared Sales Tax 
of 16% imposed under section 3 of the Act, 1990 as this 
amount is also to be refunded to the consumers, for which 
appropriate order shall be passed subsequently; 
(ix) 
As prices of essential commodities mentioned in the Sixth 
Schedule to the Act, 1990 have exorbitantly increased 
according to the media reports, therefore, Federal 
Government and the Provincial Governments are directed 
to take action under sections 6 and 7 of the Price Control 
and Profiteering and Hoarding Act, 1977 to keep the prices 
consistent as per the Sixth Schedule under section 13(1) 
of the Act, 1990 (Essential Commodities);  
Const.P.33-34/05 
5 
(x) 
Pending passing of the Finance Bill (Money Bill) 2013-14, 
Sales Tax shall be recovered from consumers on the 
taxable supplies including petroleum products and CNG at 
the rate prescribed under section 3 of the Sales Tax Act; 
and 
(xi) 
The OGRA shall issue revised notification fixing prices of 
CNG as per above observations forthwith recovering Sales 
Tax @16% on
 
taxable supplies till passing of Finance Bill 
(Money Bill) 2013-14 by the Majlis-e-Shoora.
 
 
The titled Civil Miscellaneous Application is disposed of in the above 
terms. 
 
Chief Justice 
 
   Judge 
 
   Judge 
Islamabad, the 
21st June, 2013  
Nisar/*