KARACHI, Aug 1: The Supreme Court has allowed the provincial excise and taxation department to recover vend and permit fees on methanol under the Sindh Abkari Act.

Granting the Sindh government leave to appeal against a Sindh High Court judgment declaring that since methanol was not liquor, it was not liable to be taxed under the Abkari Act, a Supreme Court bench, comprising Justices Iftikhar Mohammad Chaudhry and Qazi Muhammad Farooq, directed on Thursday that the respondent concerns would continue to pay the fees at the rate of Rs 3 per bulk gallon pending the proceedings. So far as the balance, if any, was concerned, the respondents would furnish indemnity bonds in favour of the excise director as per previous arrangement between the parties.

In view of “the important questions of law relating to the recovery of vend and permit fees involved in the case”, the bench asked the office to fix the Sindh government appeal for hearing within six months.

A number of methanol traders and consumers had challenged the vend and permit fees as the chemical substance was not an intoxicant or liquor but a poison used in the manufacturing process. A division bench of the Sindh High Court held the Sindh government declarations and notifications imposing the twin fees on methanol as unlawful and void. Not being liquor, the bench declared, methanol did not fall within the purview of the Abkari Act. It also took the officials to task for thoughtlessly issuing and withdrawing notifications.

Filed through Advocate-General Anwar Mansoor Khan and Additional AG Suleiman Habibullah, the Sindh government appeal said the latest excise department notification of February 2002 was not specifically challenged by the petitioners but was struck down by the SHC bench in suo moto exercise of the court’s constitutional jurisdiction.

It also assailed the judgment for determining questions of facts in constitutional jurisdiction.

The appellant government maintained that the SHC bench restricted itself by defining “consumable liquor” whereas the Abkari Act categorically provided for both the consumable and “denatured” or “dull” alcohol.