In this petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, the demand of the Province of Punjab for payment of Luxury tax on the motor vehicle owned by the petitioner has been questioned.
2. It is a common ground between the parties that this tax. which was levied on 1-7-1998, has since been withdrawn w,e,f, 1-7-2000 by the Finance Act. 2000. The dispute is. therefore, confined to the period in between the two enactments.
3. The learned counsel for the petitioner has contended that the vehicle in question is registered in the Province of B Sindh, where the road tax is being regularly paid. In these circumstances, it has been contended that the mere fact that sometimes the petitioner uses roads in Punjab. does not entitle the respondents to demand any tax on the aforesaid vehicle.
4. This contention of the learned counsel is well-founded. From the documents on the record, it is evident that the petitioner. is the owner of the vehicle in question. The learned counsel for the petitioner has also shown the registration book which shows that the motor vehicle tax has been paid in the Province of Sindh. In this background, it is to be seen that whether the tax levied by the respondents could be recovered from the petitioner
5. It is a common ground between the parties that tax on any vehicle which is registered out of Province of Punjab can only be levied, if the vehicle is found to be plying within the Province of Punjab. The word "plying' does not imply the occasional user of the car but requires for a full time use of vehicle in the Province of Punjab. That being a, case, the demand of the respondents for payment of luxury taxis not sustainable.
In view of what has been said above, this petition is allowed and the impugned demand D is declared to be without any lawful authority and of no legal effect. No order as to costs.