PESHAWAR, Sept 19: The Peshawar High Court on Wednesday stayed the recovery of one per cent tax levied by the district government on CNG filling stations.

A two-member bench comprising Justice Shahjehan Khan Yousafzai and Justice Qaim Jan Khan admitted to full hearing a writ petition filed by the All Pakistan CNG Association on behalf of about 70 CNG stations in Peshawar.

The bench observed that the points raised by the petitioner needed consideration and therefore the petition was admitted to full hearing. The bench put on notice the Peshawar district nazim and district coordination officer.

The impugned tax was levied last month by the district government triggering a strike by the CNG stations across the provincial capital on Aug 21 and 22.

The strike was called off when the provincial government assured the CNG dealers that the issue would be resolved.

Advocate Saadullah Marwat appeared for the petitioner and contended that the district government had no authority to levy the impugned tax.

He said the district government had limited powers of taxation and introducing tax on the CNG stations was illegal.

The lawyer argued that the impugned tax was a federal subject and only the federal government had powers to levy it. He requested the court to set aside the impugned notification and declare it unconstitutional.

BAIL GARNTED: Meanwhile, a local court granted bail to a juvenile offender charged with theft.

The court of judicial magistrate, Aurangzeb Khan, ordered that the bail application of accused Waqas Khan be accepted on submission of two sureties of Rs100,000 each.

Waqas, a scavenger, was arrested by the East Cantonment police. An FIR was registered against him on March 8 after a complainant alleged that some unknown persons had entered his residence and committed theft.