SHC issues notices to Excise Dept on PCB plea

KARACHI: The Sindh High Court (SHC) issued notices to Excise and Taxation secretary, Sindh Advocate General and others on petition filed by Pakistan Cricket Board (PCB) against demand of entertainment duty by the Excise Department.

PCB submitted in the petition that national and international T20 and test matches were hosted at Karachi National Stadium in December 2021, January-February 2022 and March 2022 after revival of international cricket in Pakistan.

Petitioner’s counsel submitted that entertainment duty was earlier exempted by the Excise Department in the years 2006, 2007, 2008, 2009, 2013 and 2018. However, the counsel submitted when the PCB filed application for exemption of entertainment duty to Excise Department for PSL-7, West Indies and Australia cricket matches the same was denied by the competent authority through a non-speaking order.

He submitted that PCB constitution makes it clear that any revenue earned by the PCB are reinvested into cricket, therefore, denial of exemption on the petitioner’s application without justification or reasoning and contrary to past practice was unlawful and liable to be set aside.

He said that petitioner also filed review application against the demand notice which has been pending for last several months. He submitted that refusal by the respondents will effectively mean that in future the petitioner will be constrained from selecting National Stadium as a venue for organising its events as other provinces do not levy entertainment duty in line with spirit of West Pakistan entertainment.

The court was requested to set aside the demand notices issued by the Excise Department and quash the penalty imposed in the impugned notices. SHC’s division bench headed by Justice Salahuddin Panhwar issued notices to Excise and Taxation Department and others and called their comments on September 5.