| The Sindh High Court (SHC) on Wednesday restrained till further orders the Cantonment Board Clifton (CBC) from taking any coercive action against residents of Defence Housing Authority for recovery of enhanced property tax along with conservancy and water charges.
The interim order came on a petition filed by residents of Clifton and DHA against the imposition of enhanced levy on house tax along with conservancy and water charges.
The petitioners submitted in their plea that the cantonment board had imposed a house tax on DHA residents by misinterpreting the Section 64 (a) and (b) of the Cantonment Act.
They submitted that the section 64 was very clear about the determination of the annual value of the property and such procedure was not followed by the cantonment board authorities. They submitted that all kinds of taxes could only be levied by the act of parliament in terms of the Article 77 of the Constitution and thus the impugned letter in question was illegal and unconstitutional.
They submitted that the DHA and CBC had failed to provide any amenities and facilities to the petitioners and since the Karachi Water and Sewerage Board was providing water, there was no question of levying the conservancy tax.
They submitted that since the procedure and law had not been followed in the case of petitioners as provided in different provisions of the Cantonment Act, 1924, the demand to pay inflated house tax and consequent thereto the water, sewerage and conservancy tax was uncalled for and illegal.
The petitioners stated that there was no concept of any house and conservancy tax in the entire scheme of the Cantonment Act, 1924, and that they had been subjected to hostile discrimination in terms of the Article 25 of the Constitution.
The petitioners’ counsel, Saadat Yar Khan, argued that residents of DHA and Clifton could not be subjected to levy of any tax including water, sewerage, conservancy and property tax, not limited to but in accordance with law. The high court was requested to declare the impugned letter of the CBC and inflated property tax notices illegal as well as to quash the unilaterally enhanced demand of house and water/conservancy tax in respect of the petitioners’ properties.
They also asked the SHC to restrain the respondents from taking any coercive action against the petitioners including causing disruption of water supply and amenity services.
A counsel for the CBC and DHA sought time to file comments on the petition. The petitioner’s counsel sought interim relief in the case submitting that the last date was September 30 for the payment of property tax along with conservancy and water charges on enhanced annual rental value.
A division bench of the high court headed by Justice Junaid Ghaffar directed the CBC and other respondents to file comments and in the meantime restrained them from taking any coercive action against the petitioners till the next date of hearing.
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