Collection of levy on gas supply to industrial captive power plants with retrospective effect unlawful, SHC rules |
KARACHI: The Sindh High Court has ruled that the collection of a levy imposed on gas supply to industrial captive power plants (CPPs) with retrospective effect was ultra vires (beyond legal authority) the relevant law.
The court also observed that the levy on CPPs could not take effect immediately upon the promulgation of the law, as the ordinance itself never determined the rate of the levy.
A two-judge bench comprising Justice Adnan Iqbal Chaudhry and Justice Muhammad Jaffer Raza further noted that the levy was to be calculated in accordance with the mechanism envisioned under Section 4 of the Off-Grid Power Plants Levy Act, 2025, and could only become operative after the rate had been calculated and duly notified.
The bench made these observations while disposing of 30 identical petitions........