' This judgment shall dispose of W.Ps. Nos. 13442/93, 7676/94, 5469/94, 5468/94 and 7223/94 as common questions of law and facts arise therein.
2. In all these petitions the petitioners have challenged the right of Zila Council, Faisalabad to recover goods exit tax in respect of the clothes and yarn being manufactured by the petitioners in their Mills, situate within the municipal limits, Faisalabad and it is being exported to foreign countries. These goods while in transit pass through the limits of Zila Council Faisalabad.
3. Learned counsel for the petitioners has raised two contentions in support of this petition; firstly that the goods exit tax can only be levied on the goods which are manufactured within the limits of Zila Council and not outside and secondly that as the goods remain in transit for a period of less than 24 hours within the area falling within the jurisdiction of Zila Council, Faisalabad, no goods exit tax is payable in respect of such goods.
4. Having heard the learned counsel for the parties and considered the arguments addressed at the Bar I am of the view that both these contentions are well-founded and are amply supported by the case-law on the subject and rule 5 of the Punjab Zila Council (Goods Exit) Tax Rules, 1990 which empowers the Zila Council to levy and collect goods exit tax on export of goods produced within its limits or which during their transit through the limits of the Zila Council beyond the time allowed for the pUrpose of these Rules. Sub-rule (5) of the said rules provides a period of 24 hours for that purpose. It is A unnecessary to examine the matter in any detail in view of the pronouncement of the Division Bench of this Court in W.P. No, 3087/84 decided on 30-6-1994 and the case of M/s. Rupali Polyester Ltd. v. Government of the Punjab through Secretary, Local Government and Rural Development and 2 others (1992 CLC 796) in which similar contentions were upheld.
' In view of what has been stated above, all these petitions are allowed and it is declared that the respondents have no lawful authority to charge goods exit tax in respect of the goods manufactured by the petitioners outside the limits of Zila Council and which remain in transit for a period of less than 24 hours. The petitioners shall, of course, be bound to follow the procedure prescribed by the Rules in this behalf.
No order as to costs.