ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-6678 of 2020

___________________________________________________________________ Date Order with signature of Judge

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FRESH CASE:

1. For order on CMA No.28486/2020 (Urgent).

2. For order on CMA No.28487/2020 (Exemption).

3. For order on CMA No.28488/2020 (Stay).

4. For hearing of main case.

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24^th December 2020

Mr. Arshad Hussain Shehzad, Advocate for Petitioner.

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1. Urgency granted.

2. Exemption granted, but subject to all just exceptions.

3&4. Through instant petition, the petitioner has challenged the vires of various tariff headings relating to the business of foreign exchange and sale of currency and coins under the Sindh Sales Tax on Services Act, 2011 for being ultra vires to the Constitution in terms of Entry Nos.8 and 9 of the Federal Legislative List of Fourth Schedule to the Constitution under which currency and foreign exchange are federal subject and cannot be the subject matter of the Provincial legislative. According to the learned counsel, petitioner deals in sale and purchase of currency and foreign exchange, which does not involve an element of service, hence does not fall within the ambit of Sindh Sales Tax on Services Act, 2011, therefore, the impugned notice dated 18.11.2020 issued by Sindh Revenue Board followed by another Notice dated 07.09.2020 are without jurisdiction and lawful authority. In support of his contentions, learned counsel has referred to an order dated 16.10.2020 passed by this Court in C.P. No.D-5075/2020 in the case of M/s. Pakistan Currency Exchange Co. (Pvt) Ltd. vs. Province of Sindh and others, which is available as Annexure “C” at pages 15 to 19 of the instant file. He has also placed reliance on the case of SRB through Chairman Government of Sindh and another v. CAA through Airport Manager and another (2017 SCMR 1344).

Let pre-admission notice be issued to the respondents as well as Advocate-General Sindh, to be served through first three modes, for 14.01.2021, when instant petition may be taken up alongwith aforesaid petition, whereas, comments, if any, shall be filed with advance copy to the learned counsel for petitioner. However, till next date of hearing, interim order already passed by this Court in the aforesaid petition shall apply mutatis mutandis in the instant petition as well.

J U D G E