LAHORE - The Lahore High Court yesterday ordered cane commissioner to seal Brothers Sugar Mills for not paying dues to the farmers.

Chief Justice-designate Syed Mansoor Ali Shah heard the case filed by a number of farmers against non-payment by the mills.

During the hearing, Punjab Cane Commissioner Waqas Ahmad told the court that the sugar mills defaulted Rs670 million last year and Rs170 million this year on the payments of the farmers. He added that the mills managements failed to make payments due to financial crisis.

Justice Shah ordered the cane commissioner to seal the Brother Sugar Mills with directions to IGPO to assist the commissioner to achieve the task.

The judge observed that the mills would be put on auction if its managements failed to come up with a payment plan on next hearing. The court would resume hearing by July 12.

Case of Tax Recovery: In another case yesterday, the LHC directed federal and provincial governments to submit reply in a petition challenging recovery of tax on import and export under Punjab Infrastructure Development Cess Act 2015.

Mughal Steel Mills, Nishat Chunian Limited and others filed the petitions through Mohsin Virk advocate. They submitted that Punjab Revenue Authority had been recovering 0.9 per cent tax from industries of the province on their import and export under the impugned Act.

The petitioners said that the government levied the tax on the industries on the pretext of using road traffic, which, they said, was an illegal act. They further held that imposing tax on imports and exports was the domain of federal government. Moreover, they said, the Punjab Infrastructure Development Cess Act 2015 was in violation of Articles 142 and 151 of the Constitution. The petitioner requested the court to set aside impugned Act for being unconstitutional.

After hearing the initial arguments, Justice Shahid Karim sought replies from the governments within two weeks.