Entry-151 of Sixth Schedule to STA: SC CB grants status quo, restores amendment

ISLAMABAD: The Constitutional Bench of the Supreme Court granting status quo, restored and maintained the amendment made by Parliament in Entry No 151 of the Sixth Schedule to the Sales Tax Act, 1990.

A five-judge Constitutional Bench, headed by Justice Aminud Din Khan on Wednesday heard the case related to exemption of tax to the residents of FATA/ PATA in form of Entry No 151 of the 6th Schedule to the Sales Tax Act, 1990 through Finance Act, 2024.

The bench accepting the preliminary arguments issued notices to the respondents, and directed the SC Office to club all the related cases, and granted status quo. As a result, the amendment introduced by Parliament in Entry No 151 of the Sixth Schedule to the Sales Tax Act, 1990 remains valid and operative.

Govt will not propose extension in tax exemptions for ex-FATA, PATA: Aurangzeb

Hafiz Ahsaan Ahmad Khokhar, representing the Pakistan Ghee Mills Association and Pakistan Steel Mills Association, contended that Parliament had full constitutional competence to legislate and amend the Sales Tax Act, 1990, including the insertion of Entry No 151 through the Finance Act, 2024. The said provision regulated the customs clearance process for consignments, mandating submission of a pay order with the customs department.

He submitted that a Division Bench of the Peshawar High Court (PHC) judgment dated 31-10-24 not only struck down the legislative amendment but, in a controversial move substituted the term “pay order” with “post-dated cheque.” Hafiz Ahsaan argued that this amounted to judicial legislation and was in clear violation of the constitutional separation of powers. “The High Court assumed the role of Parliament, which is impermissible under the Constitution,” he asserted.

He contended that the High Court had exercised suo motu jurisdiction in violation of the 26th Constitutional Amendment, which expressly restricts such powers. He also emphasised that courts are not empowered to make policy decisions or legislate for convenience, warning that the impugned judgment reflected clear judicial overreach.

Highlighting the legislative intent behind the amendment, Hafiz Ahsaan maintained that Entry No 151 was inserted to protect state revenue and ensure a streamlined taxation process, which had been entirely overlooked by the High Court.

He requested the Court to set aside the impugned judgment on grounds of erroneous legal presumption and constitutional transgression, and to grant interim relief by suspending the High Court’s decision. After hearing the preliminary arguments, the bench issued notices, and ordered that all connected matters to be consolidated, and granted status quo.

Copyright Business Recorder, 2025