Supreme Court rejects review petitions of NUML, AIOU regarding tax

Supreme Court rejects review petitions of NUML, AIOU regarding tax
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ISLAMABAD: The Supreme Court dismissed review petitions filed by the National University of Modern Languages (NUML) and Allama Iqbal Open University (AIOU) regarding tax matters.

A three-member bench of the apex court headed by Chief Justice Asif Saeed Khan Khosa and comprising Justice Gulzar Ahmed and Justice Sheikh Azmat Saeed heard the review petitions and directed both the institutions to deposit tax amount from the year 1995.

During the course of proceedings, the counsel for AIOU said that the university did not receive any tax notification during the years 1995, to 2001.

He said that the notification issued in 2001, asked the university to pay tax from 2001.

The Chief Justice asked if the notification was not issued then responsibility to pay tax not waived off.

Justice Gulzar Ahmed remarked that the notification issued in 2001 was worthy from the notification of 1995.

He observed that a little bit amendments were done in the new notification. He remarked that the counsel for NUML had filed adjournment petition.

The bench remarked that adjournment can not be granted in review petitions.

The court observed that the review petitions did not meet the required criteria.

The counsel for AIOU said that the high court had ordered both the universities to pay tax from the year 1995.

Both universities had challenged the high court verdict in the Supreme court , he added.  He said that the Capital Development Authority (CDA) had filed the case against the high court order after two days time barred.

He said that the high court had granted his client relief.

He said that he had mentioned various cases where petitions become infructuous.  The Chief Justice remarked that the nature of the case was different as law has to be declared.

He remarked that petitions where law is to be declared does not become infructuous.

Justice Gulzar Ahmed remarked that it is a tax matter and it is not possible that an institution pay tax while other do not.

The counsel said that educational institutions were exempted from taxes.

The state Prosecutor said that only government and semi government institutions were exempted from tax but tax was imposed according to a 1995, notification.

He said that only welfare organisations were exempted from the tax.

 APP

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