TANVIR AHMAD KHAN, J.--- Petitioner through this Constitutional petition has taken exception to the notice dated 19.9.1998 calling upon him to pay an amount of Rs.1,36,37,000/-.
2. Facts briefly for the disposal of this Constitutional petition are that the petitioner took lease rights for the collection of goods exit tax of Zila Council, Rahimyar Khan for 1998/99 for a consideration of Rs.5,27,00,000/-.
Learned counsel has argued that under Rule 16 of the Punjab Zila Council Exit Tax Rule, 1990, the respondents are entitled to charge 2% security and the .Refund claim at the rate of 1/2% while in the impugned notice inflated amount has been claimed.
3. I have considered the intentions and have gone through the documents appended with this petition, I have already in my order dated 29.10.1998 passed in Writ Petition No. 20669/1998 and 21323/1998 repelled. These contentions. Section 39 of the Punjab Local Government Ordinance, 1979, provides as under:-
39. Contracts.(I) All contracts made by or on behalf of a local council shall be--
(a) in writing and expressed to be made in the name of the local council;
(b) executed in such manner as may be prescribed and
(c) reported to the local council by the Chairman at the meeting next following the execution of the contract.
16. Lease of collection of Zila Councils Goods Exit Tax. (1) The Zila Council may, lease out by public auction for a period not exceeding one year, the collection of Goods Exit Tax on such terms and conditions and in such manner as may be specified by the Government.
(3) The persons whose bid is accepted as the auction shall forthwith deposit with the officer conducting the auction a sum equal to one percentum of the amount of the bid as security for the performance of his obligation in regard to.. The collection of Zila Council Goods Exit Tax and payment of lease money to the Zila Council.
(8) (i) In addition to the security deposit referred to in sub-rule
(3) the person whose bid is confirmed by the Zila Council (hereinafter referred to as the lessee) shall within seven days of such confirmation deposit with the Zila Council fifteen percent of the amount of his bid, and the balance of the amount. Of his bid shall be paid by him to the Zila Council in ten equal monthly instalments.
(9) The successful bidder shall furnish sureties on an amount equal to the total amount of the monthly instalments to the satisfaction of the Chairman, Zila Council or in the form of a Bank guarantee from a scheduled Bank.
A reference is also made to letter No. SOVI (LG)2-5/97, dated 27.7.1998, issued by Government of the Punjab Local Government and Rural Development, whereby certain instructions were issued to regulate the collection of goods exit lax. Instruction No. VIII and IX of para 2 are relevant which are quoted below for facility of reference:-
(viii) It should also be specifically mentioned in the terms and conditions of auction and agreement deed that the amount equal to the average. Amount per year calculated on tie basis of refund claims received in the Zila Councils during the year 1996/97 and 1997/98 shall be paid by the contractor in the advance before taking possession of the contract for settling the refund claims. If this amount falls short due to the amount refunded on account of refund claims, it shall be recouped by the contractor at the end of every month. It should also be mentioned in the terms and conditions of auction that the over charge/illegal charged amount of Goods Exit Tax will be refunded with 11 times penalty to the concerned person. In addition to this Section the contract shall also be cancelled on account of over charging and illegal charging of Goods Exit Tax.
(ix) 5% of the bid should be obtained as security from the contractor of Goods Exit Tax before handing over the possession of the contract. This security should be refunded after 6 months of the expiry of the lease period.
The Government of the Punjab Local Government through memo. Bearing No. SOVI(LG)2-5/97, dated 31.8.1998, further made certain amendments in the afore-mentioned instructions to stream line of collection of Goods Exit Tax.
4. The reading of Section 39(i)(b) of the Punjab Local Government Ordinance, 1979, makes it very clear that 'a contract would not be binding upon the Local Council unless and until it is strictly executed in accordance with the provision of law and the rules framed thereunder. Punjab Zila Council (Goods Exit Tax) Rules, 1990, also provide that the terms and conditions of the contract would not only be regulated by the rules but also such other terms and conditions as may be specified by the Government. The aforesaid instructions issued by Punjab Government provides 5% security to be deposited by Contractor before embarking upon the collection of Goods Exit Tax. Similarly the local councils are also authorised to secure certain amount calculated on the basis of refund claims of the preceding year from the Contractor as revolving fund so as to settle the refund claims. The instructions/conditions in this regard have been laid down generally by the competent authority as so to streamline the grant of contract for the collection of good exit tax. They are applied uniformally without any discrimination so as to protect both sides, i.e. Contractor as well as tax-payer. The petitioners being contractors are bound to bide by these instructions before embarking upon the collection of goods exit tax. In these circumstances, the challenge of the learned counsel to the charge of 5% security as well as of revolving fund is not apt. Reference in this respect is made to Khan Faiz Ullah Khan Vs. Government of Pakistan through the Establishment Secretary, Cabinet Secretary and another (PLD 1974 SC 291) to fortify that such like instructions have got the force of statutory rules.
5. In view of what has been stated above, if the petitioner is aggrieved of the quantum of revolving fund he may if so feels approach the Chairman Zila Council, who may demand on the basis of refund claim during the last two years. Resultantly, for what has been stated above, no exception whatsoever can be taken to the charge of 5% security of the total consideration in the presence of afore stated instructions. Writ petition is disposed of in the above terms.