MIANGUL HASSAN AURANGZEB, J:- Through the instant writ petition the petitioner, Capital Development Authority ("C.D.A."), seeks a direction to the respondent, Pakistan Television Corporation ("P.T.V.C.") to pay the outstanding dues on account of the property tax in terms of the orders dated 07.04.2011 passed by the Hon'ble Supreme Court in civil appeal No.318/2009.
2. For the purposes of the instant petition and without prejudice to the provisions of the Islamabad Capital Territory Local Government Act, 2015 ("the 2015 Act"), the C.D.A. in terms of Section 15-A of the Capital Development Authority Ordinance, 1960 ("the C.D.A. Ordinance") exercises municipal functions within the meaning of the Municipal Administration Ordinance, 1960. One of its functions was to levy property tax on the buildings and lands situated within the Islamabad Capital Territory.
The C.D.A. had also framed the Capital Development Authority (Imposition of Taxes) Rules, 1981 ("the 1981 Rules"). In exercise of the powers vested in the Authority under Rule 6(1) of the 1981 Rules, the C.D.A. issued Notification (S.R.O.806(I)/91) dated 20.08.1991 ("the 1991 Notification") for levying tax on commercial, industrial, institutional and residential buildings and lands. In terms of paragraph 1(B)(8) of the said Notification, absolute exemption from payment of property tax was given for buildings and plots owned by the "Federal/Semi-Government office buildings (non- commercial)." In terms of paragraph 2 of the 1991 Notification, the tax rates were to remain operational for three years. However, vide Notification (S.R.O.619(I)/94) dated 16.06.1994, paragraph 2 of the 1991 Notification was amended and the rates given in the said Notification were made operational till further orders.
3. Subsequently, in supersession of all previous notifications on the subject, including the 1991 Notification, the C.D.A., on 21.06.1995, issued Notification (S.R.O. CDA.30(9)(Noti) Coord/94/695) ("the 1995 Notification") whereby property tax was to be levied at the rate of 1/12th of the annual value of the building and lands. Paragraph 4 of the said Notification lists the nature of buildings and lands exempt from the payment of property tax. As per serial No.6 in paragraph 4, the buildings and lands owned by the Federal or a Provincial Government were exempt from property tax but buildings and lands of public and private corporations were specifically excluded from the said exemption. The C.D.A. issued the said notification with the approval of the Federal Government and in exercise of its statutory powers conferred by Section 15-A of the C.D.A. Ordinance read with sections 33 and 34 of Municipal Administration Ordinance, 1960 and the Capital Development Authority (Imposition of Taxes) Rules 1981. The 1995 Notification applicable on lands and buildings situated within the areas specified in Cabinet Division's Notification (S.R.O/805(I)/91) dated the 20th August, 1991.
4. In supersession of the 1995 Notification, the C.D.A. issued Notification (S.R.O. 24(I)/2001), dated 11.01.2001 ("the 2001 Notification") whereby the levy of property tax at the rate of 1/12th of the annual value of buildings and lands was retained but its operational limit was restricted to the areas specified in the Cabinet Division's Notification (S.R.O.-1(I)/99), dated 01.01.1999. Even under the 2001 Notification, the exemption from payment of property tax did not apply to buildings and lands owned by public and private corporations. Serial No.6 in paragraph 4 of the 2001 Notification reads thus:- "
4. The following categories of buildings and lands shall be exempt from payment of tax to the extent shown against each category:- Category Exemption 1
(1) ....................
(2)....................
(3)....................
(4).....................
(5) ...................
(6) Buildings and lands owned by the Federal or a Provincial Government, but excluding public and private corporations. ... ... ... ... ...
100% ...
5. P.T.V.C. owned three plots of land situated in Sectors F-5 and H 9, Islamabad. Apparently, in the year 2002 the C.D.A. issued notices to P.T.V.C. demanding payment of property tax for the year 2001-02 with respect to the said plots. The said notices were assailed by P.T.V.C. in writ petition No.510 of 2002 filed before the Hon'ble Lahore High Court. The said writ petition was disposed of vide order dated 07.11.2002 with the observation that P.T.V.C. should in the first instance file an appeal before the Chairman, C.D.A., who shall decide the same through a speaking order. The appeal filed by P.T.V.C. before the Chairman, C.D.A. was rejected vide order dated 24.08.2003.
6. P.T.V.C. challenged the scope of exemptions in 2001 Notification through writ petition No.1562/2003 before the Hon'ble Lahore High Court. The said writ petition was transferred to this Court along with similar writ petitions which were all dismissed vide consolidated judgment dated 27.05.2008. The operative part of the said judgment is reproduced herein-below:- "14. The respondent was well within its power to issue the notification. However it cannot charge tax beyond the period of issuance of notification. The petitions are, thus, dismissed in view of observations made above."
7. Against the said judgment dated 27.05.2008, P.T.V.C. filed civil appeal No.318/2009 before the Hon'ble Supreme Court which was dismissed vide judgment dated 07.04.2011. Apparently, the Hon'ble Supreme Court vide order dated 27.03.2009 dismissed P.T.V.C.'s application for suspension of the property tax and directed it to deposit the demanded property tax subject to the decision of the appeal. With reference to the said order dated 27.03.2009, the C.D.A. had filed a contempt petition which was also decided through the said judgment dated 07.04.2011 in the following terms:- "14. Taking notice of the grievance of the respondent Authority mentioned in Criminal Original Petition No.108 of 2010, we find that since the substantial amount to the tune of Rs.20.00 million has already been deposited by the petitioner, therefore, taking a lenient view in the matter, we direct the appellant Corporation to make payment of all the remaining outstanding dues towards property tax etc. within sixty days from the date of this order. In case of failure, it will be open for the petitioner to re-agitate their grievance to this effect, which in turn may entail consequence of criminal/contempt proceedings against the appellant Corporation. With these remarks, this appeal, being devoid of merits is dismissed. The Criminal Original Petition No.108 of 2010 is also disposed of accordingly."
8. P.T.V.C.'s civil review petition No.111/2011 in judgment dated 07.04.2011 passed in civil appeal No.318/2009 was also dismissed vide order dated 25.03.2013 passed by the Hon'ble Supreme Court.
The said order dated 25.03.2013 reads thus:- "After hearing the arguments of learned ASC for the petitioner, this review petition, being devoid of merits, is dismissed. However, with reference to directions for making payment of all the remaining outstanding dues towards the property tax, contained in paragraph-14 of the judgment under review, it is clarified that the same are to be read in conjunction with the impugned judgment of the Islamabad High Court dated 27.5.2008."
9. Apparently, P.T.V.C. did not pay the outstanding property tax which prompted the C.D.A. to file another contempt petition before the Hon'ble Supreme Court. The said petition was dismissed vide order dated 15.12.2017 which reads thus:- "Having heard the learned counsel for the parties, we do not find that the present contempt petition is competent. If the petitioner has any grievance, in that the order of this Court has not been implemented in letter and spirit, he may approach the learned High Court under Article 187 of the Constitution of Islamic Republic of Pakistan, 1973. Dismissed accordingly." - (Emphasis added).
10. The C.D.A. claims that due to the persistent default by P.T.V.C. in paying the property tax, the instant petition had to be filed for a direction to P.T.V.C. to pay the outstanding dues in accordance with the orders passed by the Hon'ble Supreme Court.
11. Learned counsel for the C.D.A., after narrating the facts leading to the filing of the instant petition, submitted that P.T.V.C. was bound to make payment of all outstanding dues on account of property tax; that P.T.V.C. had only paid Rs.20 million before the judgment dated 07.04.2011 passed in civil appeal No.318/2009 by the Hon'ble Supreme Court; that P.T.V.C. is withholding the outstanding payment of Rs.57,632,888/- inclusive of surcharge which is payable in accordance with charging notifications; that P.T.V.C. is refusing to pay the property tax amounting to Rs.17.199 million for the period between July 1995 to January 2001; that P.T.V.C. is giving a self-serving interpretation to judgment dated 27.05.2008 passed by this Court whereby writ petition No.1562/2003 was dismissed; that the Hon'ble Supreme Court vide judgment 07.04.2011 passed in civil appeal No.318/2009 had directed P.T.V.C. to make payment of outstanding dues within sixty days; that P.T.V.C. in contumacious disregard of the said judgment failed to make the payment of outstanding dues; and that P.T.V.C.'s default in making payment of arrears on account of property tax is without any lawful justification. Learned counsel for the C.D.A. prayed for the petition to be allowed in terms of relief sought therein.
12. On the other hand, learned counsel for P.T.V.C. submitted that in terms of observation contained in paragraph 14 of the judgment dated 27.05.2008 passed by this Court in writ petition No.1562/2003, the C.D.A. cannot levy tax for the period prior to the issuance of the 2001 Notification which came into effect on 01.02.2001; that the Hon'ble Supreme Court, in its judgment dated 25.03.2013 passed in P.T.V.C.'s civil review petition No.111/2011, had clarified that the Hon'ble Supreme Court's earlier judgment dated 07.04.2011 passed in civil appeal No.318/2009 had to be read in conjunction with judgment dated 27.05.2008 passed by this Court in writ petition No.1562/2003; that the C.D.A. is unlawfully demanding property tax for the period between July 1995 to January 2001 as this period is prior to coming in force of the 2001 Notification; that in terms of this Court's judgment dated 27.05.2008, the C.D.A. cannot demand property tax for the period prior to 01.02.2001, i.e. the date on which the 2001 Notification came into force; that except for the period prior to issuance of the 2001 Notification, P.T.V.C. has paid all its dues up to June 2022; that in September 2022, the C.D.A. issued a property tax bill for the year 2022-23 which also includes an amount for the period prior to 01.02.2001; that P.T.V.C. filed an application for the issuance of a revised property tax bill by excluding the amount for the period prior to the effective date of the 2001 Notification; that the C.D.A. did not issue a revised bill; that the matter has already been decided by this Court in its judgment dated 27.05.2008 and thereafter by the Hon'ble Supreme Court, the C.D.A. was left with no cause of action to file the instant writ petition; that the petition is hit by the principle of res judicata; that during the pendency of criminal original petition No.107 of 2015 before the Hon'ble Supreme Court, the C.D.A. issued letter dated 19.10.2017 whereby it was acknowledged that all current dues on account of property tax for the period after February 2001 have been paid by P.T.V.C.; and that the C.D.A.'s demand for the payment of property tax for the period prior to the effective date of the 2001 Notification is without any legal justification. Learned counsel for P.T.V.C. prayed for the writ petition to be dismissed with special costs.
13. I have heard the contentions of the learned counsel for the contesting parties and have perused the record with their able assistance. The facts leading to the filing of the instant petition have been set out in sufficient detail in paragraphs 2 to 10 above and need not be recapitulated.
14. Perusal of the judgments dated 27.05.2008 passed by this Court in writ petition No.1562/2003 and the judgment of the Hon'ble Supreme Court passed in civil appeal No.318/2009 show that P.T.V.C. claimed exemption from the liability to pay the property tax on the ground that it acts as agent of the Federal Government and performs functions in connection with the affairs of the Federation and therefore its assets in the form of lands and buildings are for all practical purposes owned by the Federal Government. This stance of P.T.V.C. was concurrently spurned by this Court as well as the Hon'ble Supreme Court and it was held that legal status of the P.T.V.C. was that of a Public Limited Company and that it was a juristic person which could hold properties in its own name and therefore could not claim exemption from the payment of property tax.
15. In the said judgments, this Court as well as the Hon'ble Supreme Court interpreted exemption from payment of property tax provided to "buildings and lands owned by the Federal or a Provincial Government, but excluding public and private corporations" in serial No.6 of paragraph 4 of the 2001 Notification.
16. Now for P.T.V.C. to claim exemption from property tax under the 1995 Notification, it had to make out a case that it fell in one of the categories that were exempt or partially exempt from the payment of property tax under the 1995 Notification. This, the learned counsel for P.T.V.C. was unable to do.
17. I have made a comparative analysis of the exemption clauses in the 2001 Notification and the 1995 Notification. Paragraphs 4 of both said Notifications provide for the exemptions in identical terms. Paragraph 4 of the 1995 Notification is reproduced herein-below:- "4. The following categories of buildings and lands shall be exempt from payment of tax to the extent shown against each category:- Category Exemption 1 (1) Residential houses, flats on apartment /owned and self-occupied by person or individuals but not self hired.50%
(2) One residential houses, flat or apartment belonging to a widow if she owns no other build up property anywhere in Pakistan and no part is rented out.100% (up to plot area 240 S.yds)
(3) Places act apart for public worship and either actually not used or used for no other purpose.100%
(4) Hospitals, Dispensaries, Clinics, Educational, Training Institutions and Libraries located on the plots allotted for specified purposes and run wholly from charitable contributions and donations.100%
(5) One residential house, flat or apartment owned and occupied by a retired Government or Semi Government employee, if it is his or her only built-up property in Pakistan.
This exemption will also be available to the surviving spouse and minor children of deceased employee.75%
(6) Buildings and lands owned by the Federal or a Provincial Government, but excluding public and private corporations.100%
(7) Buildings and lands vesting in the Capital Development Authority. This, however, does not include lands leased out to private individuals and corporations, companies and firms or to any group of individuals 100% Note: Exemption at sr.No.1, 2 and 5 will be allowed on production of notarized affidavit for each respective year."
(Emphasis added)
18. Paragraph 4 of the 2001 Notification is reproduced herein below:-
4. The following categories of buildings and lands shall be exempt from payment of tax to the extent shown against each category:- Category Exemption 1 (1) Residential houses, flats on apartment /owned and self-occupied by person or individuals but not self hired.50%
(2) One residential houses, flat or apartment belonging to a widow if she owns no other build up property anywhere in Pakistan and no part is rented out.100% up to plot area 240 S.yds.
(3) Places act apart for public worship and either actually not used or used for no other purpose.100%
(4) Hospitals, Dispensaries, Clinics, Educational, Training Institutions and Libraries located on the plots allotted for100% specified purposes and run wholly from charitable contributions and donations.
(5) One residential house, flat or apartment owned and occupied by a retired Government or Semi Government employee, if it is his or her only built-up property in Pakistan.
This exemption will also be available to the surviving spouse and minor children of deceased employee.60%
(6) Buildings and lands owned by the Federal or a Provincial Government, but excluding public and private corporations.100%
(7) Buildings and lands vesting in the Capital Development Authority. This, however, does not include lands leased out to private individuals and corporations, companies and firms or to any group of individuals 100% Note: Exemption at Sl.No.1,2 and 5 will be allowed on production of affidavit on simple paper for each respective year to be attested by any Officer to be nominated by the Authority for this purpose."
(Emphasis added)
19. Now, a comparison of exemptions given to the buildings and lands owned by the Federal Government in serial No.6 of paragraphs 4 of the 1995 and 2001 Notifications shows that there is no difference in the language of the said two Notifications, to this extent. This leads me to conclude that the ratio of the Hon'ble Supreme Court's judgment dated 07.04.2011 passed in civil appeal No.318/2009 with regard to P.T.V.C.'s entitlement to exemption from property tax in serial No.6 paragraph 4 of the 2001 Notification would equally applicable to the liability of P.T.V.C. to pay property tax for the period between 1995 and 2001 under the 1995 Notification. In other words, P.T.V.C. cannot seek exemption from payment of property tax for the period between July 1995 and January 2001, i.e. the period during which the 1995 Notification remained in force.
20. During the proceedings in the instant petition, the C.D.A. produced a statement of outstanding dues of P.T.V.C. according to which the amount recoverable from P.T.V.C. was worked out to be Rs.57,632,888/- inclusive of the surcharge in terms of clause (b), paragraphs 5 of the 1995 and 2001 Notifications. The said paragraph 5(b) in 1995 and 2001 Notification provide for the imposition of surcharge at the rate of 10% per month and 15% per month, respectively, if the outstanding property tax is paid after the expiry of the financial year. However, the statement of outstanding amount payable by the P.T.V.C., as prepared by the Revenue Directorate of the C.D.A. does not take into account clause (a) of the paragraph 5 of the 1995 and 2001 Notifications which respectively prescribe 10% and 5% rebate if the property tax is paid by 30th September of the financial year for which the tax is payable.
21. I say so because the C.D.A.'s abovementioned statement does not show the date on which payment of property tax had been made. Additionally, the said statement is inconsistent with the C.D.A.'s earlier letter dated 19.10.2017 which P.T.V.C. brought on record along with its report and parawise comments. Table-II in the said letter dated 19.10.2017 issued by the Deputy Director (Revenue), C.D.A. refers to a meeting between the officials of P.T.V.C. and the C.D.A. and acknowledges that P.T.V.C. has paid all outstanding property tax including surcharge for the period commencing from February 2001 up to the financial year 2014-15. These discrepancies make it necessary for the C.D.A. to issue a demand of outstanding property tax to P.T.V.C. after working out the same afresh. In the event P.T.V.C. has a grievance with regard to calculation of the amount payable as property tax, it would be at liberty to avail the statutory remedy.
22. In view of the above, the instant writ petition is allowed to the extent that P.T.V.C. is held liable to pay the outstanding dues, if any, on account of property tax for the period commencing from July 1995 till the current financial year. For this purpose, the officials of the C.D.A. shall work out the outstanding dues payable by P.T.V.C. There shall be no order as to costs.