Ruling against GIDC: Centre contests Peshawar High Court order again
Moves fresh plea in top court requesting it to suspend the decision
Peshawar High Court. PHOTO: PPI
ISLAMABAD:
The federal government has once again challenged the Peshawar High Court’s order against the collection of the Gas Infrastructure Development Cess (GIDC) from several industrial units and CNG stations in Khyber-Pakhtunkhwa.
In an application submitted on Saturday, the Ministry of Petroleum urged the Supreme Court to suspend the PHC order in order to prevent ‘irreparable loss and injury’ to the government. It requested that the hearing of its plea be fixed for April 7.
“There is a strong presumption as to the constitutionality of the law and while interfering in the ordinary operation of law the courts are required to be circumspect and very cautious particularly with reference to laws governing fiscal matters as any interference with the operation of fiscal laws will block the source of revenue of the government necessary for its functioning. It is only where the law is glaring unconstitutional that the court may interfere,” reads the ministry’s plea.
“It is further submitted that the court below (PHC) has failed to take into account the parameters for staying the recovery of levy as interim measures… it will cause immeasurable loss to the public exchequer and the hamper the economic development of the country,” it added.
The government also believes that the high court has passed the order in ignorance of material fact adding that suspending the operation of law and staying the recovery of the levy is not sustainable in fact or law.
According to sources, because of the PHC order, the federal government will have to refund Rs94 billion to commercial consumers of gas.
The government began collecting GIDC after the GIDC Act 2011 was enacted with the view to use the revenue to fund different megaprojects, including the Iran-Pakistan (IP) and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipelines, and the LNG import and LPG supply enhancement initiatives.
But the PHC, on June 13, 2013, declared the collection of GIDC unconstitutional, preventing the government from levying the tax on industrial units and CNG stations in K-P. The PHC order was later upheld the Supreme Court on August 22, 2014.
The PHC also suspended the operation of GIDC Ordinance 2014 after it was promulgated last year.
Published in The Express Tribune, April 5th, 2015.
The federal government has once again challenged the Peshawar High Court’s order against the collection of the Gas Infrastructure Development Cess (GIDC) from several industrial units and CNG stations in Khyber-Pakhtunkhwa.
In an application submitted on Saturday, the Ministry of Petroleum urged the Supreme Court to suspend the PHC order in order to prevent ‘irreparable loss and injury’ to the government. It requested that the hearing of its plea be fixed for April 7.
“There is a strong presumption as to the constitutionality of the law and while interfering in the ordinary operation of law the courts are required to be circumspect and very cautious particularly with reference to laws governing fiscal matters as any interference with the operation of fiscal laws will block the source of revenue of the government necessary for its functioning. It is only where the law is glaring unconstitutional that the court may interfere,” reads the ministry’s plea.
“It is further submitted that the court below (PHC) has failed to take into account the parameters for staying the recovery of levy as interim measures… it will cause immeasurable loss to the public exchequer and the hamper the economic development of the country,” it added.
The government also believes that the high court has passed the order in ignorance of material fact adding that suspending the operation of law and staying the recovery of the levy is not sustainable in fact or law.
According to sources, because of the PHC order, the federal government will have to refund Rs94 billion to commercial consumers of gas.
The government began collecting GIDC after the GIDC Act 2011 was enacted with the view to use the revenue to fund different megaprojects, including the Iran-Pakistan (IP) and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipelines, and the LNG import and LPG supply enhancement initiatives.
But the PHC, on June 13, 2013, declared the collection of GIDC unconstitutional, preventing the government from levying the tax on industrial units and CNG stations in K-P. The PHC order was later upheld the Supreme Court on August 22, 2014.
The PHC also suspended the operation of GIDC Ordinance 2014 after it was promulgated last year.
Published in The Express Tribune, April 5th, 2015.