PHC orders to enlist stock before 23rd Feb

Humayun Khan
PESHAWAR: Peshawar High Court (PHC) has ordered Federal Board of Revenue (FBR) to enlist Sarhad Cigarette Industries stock before 23rd February 2023 in First Schedule while stopped receiving of duties under SRO in cases regarding increase in Excise Duty on cigarette production.
The counsel Ishtiaq Ahmad (senior) Advocate appeared on behalf of petitioner company while federal government, FBR, Chief Commissioner Inland Revenue, Regional Tax Office Peshawar and Commissioner Inland Revenue Peshawar have been respondents in the writ petition.
The counsel argued that on 14th February FBR has issued notification for multiplying Excise Duty twice on cigarette production beyond its jurisdiction and by violating Article 77 of Constitution under which only Federation has the authority to change rates.
The counsel added that company was cost at earlier Rs2050 per one thousand cigarettes but after 14th February notification it reached up to Rs5050 per thousand. The counsel argued that FBR can charge fixed excise duty on different items but the board has no jurisdiction to amend Charge of Duty which is clear from the first schedule of concerned Act.
Deputy Attorney General Sana Ullah appeared on behalf of federation before PHC while the divisional bench ordered FBR to declare production earlier from 23rd February as per First Schedule.
The divisional bench of PHC comprising of Justice SM Attique Shah and Justice Syed Arshad Ali issued notices to respondents while ordered to submit reply within one month and adjourned further hearing after conclusion of initial arguments.