Legal Principle & Question Decided

Ruling Summary: This decision was rendered by the Islamabad High Court, officially reported as UCH Power (IHC). In this matter between UCH Power (Private) Limited and DCIR Islamabad etc, the court adjudicated key questions of statutory construction, procedural regularity, and legal precedent under Pakistani law.

Core Holding: The honorable bench evaluated governing statutory provisions and judicial authorities to establish the rights of the parties, delivering the binding reasoning set out below.

Full Judgment Text & Judicial Ruling

COURT: Islamabad High Court (Honourable Mr. Justice Khadim Hussain Soomro, Honourable Mr. Justice Muhammad Asif) AUTHOR JUDGE: Honourable Mr. Justice Khadim Hussain Soomro DECISION DATE: 05-JAN-2026 CASE NO: Writ Petition-5559-2025 CITATION: 2026 IHC 245264 PARTIES: UCH Power (Private) Limited VS DCIR Islamabad etc LAW / SECTION: under Section 48 of the Sales Tax Act, 1990| SUBJECT: Miscelleneous, Other REMARKS: Seeks stay against recovery notice U/s 48 of Sales Tax Act ============================================================ ORDER SHEET IN THE ISLAMABAD HIGH COURT, ISLAMABAD JUDICIAL DEPARTMENT

Writ Petition No.5559 of 2025

UCH Power (Private) Limited Versus DCIR, Islamabad, etc. S. No. of order/ proceedings Date of order/ Proceedings Order with signature of Judge and that of parties or counsel where necessary. 05.01.2026 Hafiz M. Idrees, Advocate for the petitioner.

Through this writ petition, the petitioner seeks the following relief:- “ An appropriate writ may graciously be issued by granting the stay against the impugned tax demand till the decision of appeal by Respondent No.3 and Respondent No.1 be restrained from taking any coercive action against the petitioner for the recovery of impugned tax demand and further direct Respondent No.3 to decide the pending appeal of the petitioner as soon as possible or grant any other relief which is fit to compensate the petitioner.”

2. The petitioner company, through the instant petition seeks suspension of operation of the impugned notice dated 25.08.2025, issued under Section 48 of the Sales Tax Act, 1990 by respondent No.1, until the decision of the appeal pending before the CIR (Appeals), Islamabad. The petitioner also seeks a direction to the respondent No.3 to decide the said appeal within a reasonable timeframe. 3. At the very outset, learned counsel for the petitioner submitted that the petitioner would be satisfied if a direction is issued to the respondent department for early disposal of the appeal, which is already pending adjudication. 4. The submissions made by the learned counsel for the petitioner have substance. In this behalf the Hon’ble Supreme Court of Pakistan in case titled “ Mehram Ali Vs Federation of Pakistan and others” [PLD 1998 sC 1445] has specifically held that there should be adjudication of grievance by an independent Tribunal and even Lahore High Court in numerous judgments has held that an

assesse is entitled to adjudication in respect of his disputed tax liabilities by at least one independent forum out side hierarchy of the respondent department. 5. In view of the above, the respondent No.3 is directed to decide the petitioner’s appeal within the time frame specified under the law. 6. Meanwhile, no coercive measures shall be taken by the respondent department on the basis of the notice dated 25.08.2025 issued by respondent No.1. 7. Disposed-of accordingly.

(MUHAMMAD ASIF) (KHADIM HUSSAIN SOOMRO) JUDGE JUDGE

S.Akhtar

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