Petitioner was awarded a contract for collection of Tax on Transfer of Immovable Property by Tehsil Municipal Administration, Nishtar Town, Lahore (Respondent No, 1) with a bid of Rs, 8,00,50,000/- for a period of seven months with effect from 1.12.2004 to 30.6.2005 and he in this capacity filed instant constitutional petition, to avoid demand by Respondent No, 1 to pay stamp duty on the lease amount, equivalent to fifty paisas for every hundred rupees or part thereof on the ground that by virtue of amendment in Section 22-A of the Stamp Act, 1899 as per the Punjab Finance Act, 1997, he was only liable to pay the stamp duty to the "local council" which has already been abolished/dissolved at the strength of Section 196 of the Punjab Local Government Ordinance; 2001 and that T.M.A. (Respondent No, 1) has no right to recover this Stamp Duty.
2. I have heard the learned counsel for the petitioner and learned Additional Advocate General, besides examination of report/parawise comments by Respondent No,
1. Controversy which hinges for determination is as to whether stamp duty payable under Article 5(ccc) of Schedule I of Stamp Act, 1899, as amended by the Punjab Finance Act, 1997 (Act IX of 1997) payable to a "local council" can be recovered by Tehsil Municipal Administration (Respondent No, 1). Besides, under Section 196(2) of the Punjab Local Government Ordinance, 2001 fees payable to a "local council" which were not inconsistent with any of the provisions of Ordinance, 2001 were to continue to be paid and were to remain in force. Section 180 of the same enactment, provides succession of properties, assets and liabilities of the "local councils" namely Metropolitan Corporations; Municipal Corporations; District Councils; Municipal Committees; Town Committees, established under Punjab Local Government Ordinance, 1979 by the City District Government in case of Metropolitan Corporations and Tehsil Municipal Administrations in case of Municipal Corporation etc. Similarly, according to second Schedule, Part-IV to the Ordinance, 2001, levy of tax on transfer of immovable property by the Town Council, could be recovered by it, under Rule 18(3) of the Punjab Local Government (Auction of Collection Rights) Rules 2003, Collective study of all these provisions left no shadow of doubt that stamp duty payable to the "local council" as per Article 5(ccc) of Schedule I of Stamp Act, 1899, as amended up to date, could be recovered by respondent No, 1 and the same cannot be avoided solely on the ground that to corresponding amendment in this provision of law has been made by substituting TMA in place of 'local council". For all intents and purposes TMA is the successor of "local council" and can lawfully recover the fees, debts and other dues payable by the contractors.
3. For the reasons noted above, no case for interference in Constitutional jurisdiction was made out, hence this petition being devoid of merits, is dismissed.