LAHORE: The Lahore High Court (LHC) on Wednesday ordered de-sealing of the Pakistan Council of Scientific and Industrial Research (PCSIR) Laboratory, which was sealed by the Excise and Taxation Department over non-payment of property tax.
LHC Chief Justice Syed Mansoor Ali Shah passed the orders while hearing a petition filed by PCSIR Lab Director General Dr Sakhawat, challenging the notices issued by the Excise Department for payment of Rs 22 million property tax.
During the hearing, the petitioner's counsel submitted that the PCSIR Laboratory was a federal government institution and the provincial authorities could not recover property tax from the federal government institutions as per Article 165 of the Constitution.
However, the provincial Excise Department through a notice had asked the petitioner-lab to pay Rs 22 million as property tax for period of 1996-2016 and it sealed the PCSIR Lab building over non-payment, he added. He said that the step affected the research work and administration affairs of the Laboratory. The counsel requested the court to set aside the notices, being illegal.
But, a provincial law officer opposed the request saying that the property tax could be recovered from such institutions.
At this stage, the court observed that it was ordering de-sealing of the Lab in public interest but it did not mean that the institution was exempted from tax.
"Apparently, it seems that the PCSIR lab was not a federal government institution, rather it was an autonomous institution and tax could be recovered from such bodies," the court added.
The court, adjourned the hearing, and sought reply from the excise authorities till July 25.
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