How to File a Constitutional Petition Against Tax Notices in Islamabad & Peshawar High Courts?

Generally, the High Court requires you to follow the standard appellate hierarchy (Commissioner Appeals, then Tribunal). However, a petition is maintainable even without exhausting these remedies if the impugned notice suffers from a "jurisdictional vacuum," violates the principles of natural justice (e.g., no hearing was given), or challenges the constitutionality of the tax law itself. In the Islamabad and Peshawar High Courts, we argue that the existence of an alternative remedy is not an absolute bar when the very initiation of the proceedings is void ab initio.

Under the 26th and 27th Amendments, "Constitutional Benches" have been established to hear matters involving the interpretation of the Constitution. If your tax dispute involves a substantial question of law regarding federal legislative competence—such as the recent challenges to Section 7E (deemed income) or Section 4C (super tax)—the matter may be transferred from a general bench to a specialized Constitutional Bench. We ensure your petition is drafted to meet the specific criteria required for these benches in both the IHC and PHC.

When we file a petition, we simultaneously move an application for an "interim stay." If granted, the court restrains the tax department from taking coercive actions, such as recovering the tax from your bank accounts, until the petition is decided. The Islamabad High Court often grants these stays if we can demonstrate a prima facie case and that the taxpayer would suffer "irreparable loss" if the funds were forcibly withdrawn before the legal validity of the notice is tested.

The Peshawar High Court (PHC) has been a significant forum for protecting regional tax protections, such as the FATA/PATA exemptions. Primary grounds often include the violation of Article 25 (equality of citizens) or the unauthorized withdrawal of a "vested right" granted through a tax holiday. Additionally, notices issued by provincial authorities that overlap with federal jurisdiction are frequently challenged here to clarify the boundaries of the Sales Tax on Services vs. Sales Tax on Goods.