LAHORE: The Lahore High court has barred the Lahore Electric Supply Company (Lesco) from recovering arrears of general sales tax (GST) from consumers through bills, saying, “Only the Federal Board of Revenue (FBR) has the jurisdiction to recover the tax arrears.
Justice Abid Aziz Sheikh also granted stay to industrial units against the recovery.
Representing the petitioner-companies, Advocate Mohsin Virk told the court that Lesco had been recovering disputed amount of the tax invoking Section 48 of Sales Tax Act illegally.
He said Lesco or any other power distribution company had no power to recover arrears of the sales tax challenged by the consumers before the forum concerned. He said only the FBR had the power to recover the disputed tax arrears. He asked the court to restrain Lesco from the impugned act.
The FBR counsel told the court that Lesco had been recovering the arrears with the board’s permission.
After hearing the arguments, Justice Sheikh observed Lesco had no jurisdiction to recover the disputed amount of the sales tax.
The judge directed the FBR to decide the matter afresh after affording an ample opportunity of hearing to the petitioners. The petitions were disposed of by the court.
