Published On: Tue, Feb 11th, 2020
Published in Category: Court News

Only federation , federally administered areas can challenge government act: SC

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ISLAMABAD: Supreme Court (SC) has remarked that only federation and federally administered tribal areas can challenge government act.

The court further remarked any individual or the companies affected by act cannot challenge act JIDC cess act can not be maintained.

A 3-member bench of SC presided over by Justice Mushir Alam took up Gas Infrastructure Development Cess case for hearing Monday.

Makhdoom Ali Khan counsel for private companies while giving arguments through video link said government had levied gas infrastructure development cess for completion of different of gas projects. The money was not used for the purpose for which it was collected.

Peshawar High Court (PHC) maintained in its decision that benefit of this cess will go to the nation. Cess money was to be spent on three projects. Government has collected over Rs 295 billion against this cess. Pak-Iran gas project has come to halt due to restrictions. Pakistan has provided its share of amount in TAPI project. Government has spent only Rs 487 million out of Rs 295 billion. Government has not spent even a penny out of this fund on LNG project. Two private companies built terminals for LNG. PHC did not keep in view the facts in its decision.

Justice Mansoor Ali Shah raised question on one occasion can Pakistan not launch any project which is beneficial for it despite restrictions. Money is collected from sugar mills too for construction of roads.

Justice Faisal Arab while addressing counsel for petitioner remarked “ you should tell us first this is tax or cess.

The counsel Makhdoom Ali Khan said this is not tax in his view.

Justice Faisal Arab remarked “ the petitioners are not consumers but they sell gas to others. Agriculture and other industries should be provided tax free gas. It was said industry did not need gas. Why the LNG is not being kept in view in this cess.

The court had adjourned hearing of the case till today (Tuesday.