"\u003chtml xmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1252\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 11\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 11\"\u003e\r\n\u003clink rel=File-List href=\"2013J26_files/filelist.xml\"\u003e\r\n\u003ctitle\u003eANALYSIS OF SECTION 14\u003c/title\u003e\r\n\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:DocumentProperties\u003e\r\n  \u003co:Author\u003eOratier\u003c/o:Author\u003e\r\n  \u003co:Template\u003eNormal\u003c/o:Template\u003e\r\n  \u003co:LastAuthor\u003eOratier\u003c/o:LastAuthor\u003e\r\n  \u003co:Revision\u003e2\u003c/o:Revision\u003e\r\n  \u003co:TotalTime\u003e0\u003c/o:TotalTime\u003e\r\n  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Section1\r\n\t{size:8.5in 11.0in;\r\n\tmargin:1.0in 1.25in 1.0in 1.25in;\r\n\tmso-header-margin:.5in;\r\n\tmso-footer-margin:.5in;\r\n\tmso-paper-source:0;}\r\ndiv.Section1\r\n\t{page:Section1;}\r\n--\u003e\r\n\u003c/style\u003e\r\n\u003c!--[if gte mso 10]\u003e\r\n\u003cstyle\u003e\r\n /* Style Definitions */\r\n table.MsoNormalTable\r\n\t{mso-style-name:\"Table Normal\";\r\n\tmso-tstyle-rowband-size:0;\r\n\tmso-tstyle-colband-size:0;\r\n\tmso-style-noshow:yes;\r\n\tmso-style-parent:\"\";\r\n\tmso-padding-alt:0in 5.4pt 0in 5.4pt;\r\n\tmso-para-margin:0in;\r\n\tmso-para-margin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:10.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-ansi-language:#0400;\r\n\tmso-fareast-language:#0400;\r\n\tmso-bidi-language:#0400;}\r\n\u003c/style\u003e\r\n\u003c![endif]--\u003e\r\n\u003c/head\u003e\r\n\r\n\u003cbody lang=EN-US style=\u0027tab-interval:.5in;text-justify-trim:punctuation\u0027\u003e\r\n\r\n\u003cdiv class=Section1\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003eANALYSIS OF SECTION 14\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003eOF FEDERAL EXCISE ACT, 2005\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003eBy\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003eShahbaz Butt, Advocate Supreme Court of Pakistan, Lahore\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eSection 14 of the\r\nFederal Excise Act, 2005 (for brevity FEA) as per its heading, deals with the\r\nrecovery of unpaid duty, erroneously \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003erefunded\r\nduty and arrears of duty etc. Perusal of the head note reveals that it focuses\r\non enforcement of levy, payment and recovery of duty in \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.7pt\u0027\u003ethe aforesaid three eventualities and prescribes\r\nand stipulate the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003erequirements for\r\nproceedings in the matter.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003eSubsection (1) of\r\nsection 14 of the Federal Excise Act, 2005 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.3pt\u0027\u003edeals and addresses the four situations in which said provision can be \u003c/span\u003einvoked:\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eWhere any person;\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.75pt\u0027\u003ea.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e  \u003c/span\u003efor any\r\nreason has not levied the duty; or\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.75pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eb.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003ehaving\r\nlevied or not levied the duty has not paid the duty; or\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.75pt\u0027\u003ec.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e  \u003c/span\u003ehas short\r\nlevied or short paid such duty; or\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.75pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.5pt\u0027\u003ed.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e  \u003c/span\u003ewhere by\r\nreason of some error (it may be an advertent or \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.3pt\u0027\u003einadvertent error) an amount of duty has been refunded.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003ePerusal of the\r\nprovisions of law would reveal that the word \u0027or \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003ehas specifically been used between all the four eventualities. Usually\r\nthe \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003eword \u0027or\u0027 refers to alternate\r\npositions. However the same can be read as \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003e\u0027and\u0027 as the circumstances and the language of a statute permit and the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003eeventualities appearing subsequent thereto can be\r\ntaken conjunctively. \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eThe Superior\r\nCourts in a number of cases has held that the word \u0027or\u0027 is \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.35pt\u0027\u003einterchangeable with the word \u0027and\u0027 depending on\r\nthe language of the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003estatute. In this\r\nregard I am fortified from the judgment, reported as \u003cu\u003e1980\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003e\u003c/u\u003e\u003c/span\u003e\u003cu\u003e\u003cspan style=\u0027letter-spacing:\r\n.1pt\u0027\u003eSCMR 391 and 1990 PTD 389.\u003c/span\u003e\u003c/u\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eHaving explained\r\nthe above, by placing the word \u0027or\u0027 in exjusta \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.4pt\u0027\u003eposition with the word \u0027and\u0027 in the provision of law aforesaid, I am of \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.35pt\u0027\u003ethe considered opinion, that on existence of an\r\nindependent or single \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003esituation or\r\neven in case of co-existence of more than one situations, the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.65pt\u0027\u003econcerned authority may press the provisions into\r\nservice for the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003erecovery of duty\r\nfalling within the contours of the aforesaid provision of \u003c/span\u003elaw.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003eIt is evident from\r\nthe provision itself that for stepping into the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.5pt\u0027\u003eprovision the relevant steps have been provided firstly, it has been \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003estipulated that a show cause notice has to be\r\nserviced for payment of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003esuch duty (The\r\nquestion as to whether the service of show cause notice \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.5pt\u0027\u003eis mandatory or otherwise shall be discussed later)\r\nsecondly it has \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003especifically been\r\nprovided that such show cause notice shall be issued \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003ewithin three years (originally) from the relevant\r\ndate.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003eIt is noted that\r\nthe period for issuance of show cause notice \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.25pt\u0027\u003eaforesaid was extend to five years through Finance Act, 2010 w.e.f. 5th \u003c/span\u003eJune,\r\n2010.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eThe perusal of the\r\nprovision as contained in subsection (1) of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.15pt\u0027\u003eSection 14 of Federal Excise Act, 2005 give rise to following issues for\r\n\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003econsideration:-\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.7pt\u0027\u003ei.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003ewhat does\r\nthe word \u0027serviced with notice\u0027 means.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.7pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.7pt\u0027\u003eii.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e  \u003c/span\u003ewhether\r\nissuance of show cause notice is mandatory and \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003elimitation has to be reckoned with the date of issuance of notice.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.25in;\r\nmso-pagination:none;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003eiii.\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003ewhat\r\nshall be the effect of the extended limitation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eI will deal with\r\nall the three questions separately:-\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cu\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eIssue No. 1 \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/u\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003eThe law requires\r\n\u0027such person shall be serviced with notice \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.4pt\u0027\u003erequiring, him to show cause for payment of such duty.\u0027 It is noted \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003ethat the provisions lays emphasis firstly on\r\nconnotation \u0027any person\u0027 and \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.5pt\u0027\u003ethan on\r\n\u0026quot;such person\u0026quot; therefore, we will candidly lay hand on the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003eexpression \u0027any person\u0027 as used in the beginning\r\nof subsection (1) and \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.65pt\u0027\u003ethe words \u0027such\r\nperson\u0027 as subsequently used, since \u0026quot;any person\u0026quot; \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003equalified and followed by the words \u0027has not levied\r\nor paid any duty or has short levied or short paid such duty or where any\r\namount of duty \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003ehas been refunded\r\nerroneously.\u0027 While term \u0026quot;such person\u0026quot; has been \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003eused in the context of service of show cause\r\nnotice, therefore, it clearly \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003efollows\r\nthat the word \u0027such person\u0027 have to be read in the context of the term \u0027any\r\nperson\u0027 who has been allegated for not levying or not paying any duty or short\r\nlevying or short paying the duty or getting \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.25pt\u0027\u003eerroneous refund of such duty shall be \u0027such person\u0027 on whom the notice \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.35pt\u0027\u003eof show cause has to be served. Therefore, it\r\nfurther follows that such \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003eshow cause\r\nnotice has to be served on the person earlier referred and \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003esuch service has to be made necessarily in\r\naccordance with the procedure \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003evisualized\r\nunder section 47 of the Federal Excise Act, 2005 viz., (i) in case of an\r\nindividual person on the person himself and in case of his \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003edisability or in case \u0027such person\u0027 is a non\r\nresident, on the person being \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003ehis\r\nrepresentative as defined under section 172 of the Income Tax Ordinance. This\r\ncan be visualized as a service by hand through an \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003eofficial viz., process server (ii) under clause\r\n(b) of subsection (1) of section 147, the said notice can be served through\r\nregistered post or courier service addressed either to the address of such\r\nperson\u0027s \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003e\u0026quot;registered office or\r\nalternatively on the address provided for such \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.1pt\u0027\u003eservice of notice under the Federal Excise Act, 2005 and in case where\r\nsuch person does not have such office or address, notice can be sent to his\r\noffice or place of business in Pakistan. It is important to specifically \u003c/span\u003estate\r\nhere that the term \u0027registered post\u0027 has not been defined in Federal \u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eExcise Act, 2005. Therefore, the same shall bear\r\nthe some meaning as \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003ehave been defined\r\nunder section 27 of the General Clauses Act, 1897. \u003c/span\u003eSection 27 reads as\r\nunder:--\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;mso-pagination:\r\nnone;mso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n-.05pt\u0027\u003e\u0026quot;27. \u003cu\u003eMeaning of service by post\u003c/u\u003e.---Where any [Central Act]\r\nor \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eregulation made after the\r\ncommencement of this Act authorizes \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eor\r\nrequires any document to be served by post, whether the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.35pt\u0027\u003eexpression \u0027serve\u0027 or either of the expressions\r\n\u0027give\u0027 or any \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eother expression is\r\nused, then unless a different intention \u003c/span\u003eappears, the service shall be\r\ndeemed to be effected by properly \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eaddressing,\r\npre-paying and posting by registered post, a letter \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003econtaining the document, and, unless the contrary\r\nis proved, to \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003ehave been effected at\r\nthe time at which the letter would be \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003edelivered\r\nin the ordinary course of post.\u0026quot;\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.5pt\u0027\u003eTherefore any such\r\nservice through registered post shall \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.65pt\u0027\u003ecomply\r\nwith all the requirements of section be produced above \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003e(iii) alternately the service could be made in\r\nconsonance with the manner \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eprovided\r\nfor service of summons under Code of Civil Procedure 1908 \u003c/span\u003e(Act V of\r\n1908). It means that the registered post service must be in line \u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003ewith Rule 10A read with Rules 10, 13, 14, 17 and\r\n20 of Order V of the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eC.P.C. of 1908.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.65pt\u0027\u003eWhere the notice\r\nhas to be served on a person \u0027who is \u003c/span\u003erecognized as an association of\r\npersons\u0027 such service has to be made \u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eon the\r\nprincipal officer or the member of the association of person, in \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003ethe manner provided hereinabove. It may be noted\r\nthat service by \u003c/span\u003eregistered post can not be made in deviation of the\r\nprocedure laid down under C.P.C. Reliance in this behalf is placed in case\r\nreported as Hassan Foods Multan v. CIT 2003 PTD 1516.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eFrom the above discussion without any iota of doubt,\r\nit can be \u003cspan style=\u0027letter-spacing:.05pt\u0027\u003esafely said that service of notice\r\nreferred to in section 14(1) of Federal \u003c/span\u003eExcise Act, 2005 has firstly to\r\nbe served strictly on the addressee of the \u003cspan style=\u0027letter-spacing:-.15pt\u0027\u003enotice\r\nand secondly such service must be in the manner laid down under \u003c/span\u003esection\r\n47 of the Federal Excise Act, 2005 read with section 27 of the General Clauses\r\nAct, 1897 and further read with Order V Rule 10 of the Civil Procedure of Code\r\n1908.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027mso-pagination:none;mso-layout-grid-align:none;\r\ntext-autospace:none\u0027\u003e\u003cu\u003eIssue No. 2 \u003co:p\u003e\u003c/o:p\u003e\u003c/u\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003ePerusal of\r\nsubsection (1) of section 14 would reveal that the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003eprovision specifically holds that \u0027such person\r\nshall be serviced with \u003c/span\u003enotice requiring him to show cause for payment of\r\nsuch duty\u0027. This \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eclearly means that service\r\nof such show cause notice is \u0027sine-qua-non\u0027 \u003c/span\u003efor the purposes of pressing\r\ninto service the provision of section 14 of \u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eFederal\r\nExcise Act, 2005. The usage of the term \u0027shall\u0027 is immense \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003eimportance. The word \u0027shall\u0027 is a word of command\r\nand refers to \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eimperative mandatory,\r\nreliance in this behalf is placed on PLD 1993 SC 473 and 1992 SCMR 468.\r\nTherefore, it can be inferred without any fear of contradiction or opposition\r\nthat, service of show cause notice is not \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.5pt\u0027\u003eonly a condition precedent but also a statutory requirement and \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003econsequently without service of notice of show\r\ncause, no steps can be \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003etaken to\r\nproceed further for recovery of duty as visualized under \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003esection 14 of Federal Excise Act, 2005, until the\r\ncondition of proper \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eservice and\r\nissuance of show cause notice is not complied with, the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003epayment of alleged \u0027duty cannot be pressed into service.\r\nFor completion \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eof due process of law\r\nthe legal requirements of \u0027service of show cause \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003enotice on the concerned person visualized under section 14 of Federal \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003eExcise Act, 2005 is mandatory requirement in view\r\nof Article 10A of the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eConstitution of\r\nPakistan, 1973. It may also important to point out here \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003ethe \u0027properly opportunity of hearing\u0027 is the basic\r\nrequirements for a \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003efair trial. The\r\nSuperior Courts in a number of cases have already held \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.2pt\u0027\u003ethat even where in a statute \u0027providing for\r\nopportunity of hearing has not \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003especifically\r\nbeen provide the principle of Audi altram partem has to be \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003eread into such statute, unless expressly it has not\r\nspecifically been \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eprohibited.\r\nTherefore, in the given circumstances and in view of the \u003c/span\u003eprinciple laid\r\ndown by superior courts that \u0026quot;no condemnation without \u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003econfrontation\u0026quot; the service of show cause\r\nnotice is mandatory, reliance is \u003c/span\u003eplaced on GST 2005 CL 326.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eIt is important to\r\npoint out here that for prescribing limitation, the law maker has purposefully\r\nused the phrase \u0026quot;shall be issued\u0026quot; in \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n-.05pt\u0027\u003econtrast with the phrase \u0026quot;shall be serviced\u0026quot; in the context\r\nof service of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003enotice. Since issuance\r\nof notice in the circumstances does not include service of notice. The\r\nlimitation of three years or five years as the case \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003emay be shall be reckoned from the date of issuance\r\nof notice of show \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003ecause. Therefore, in\r\nmy humble submission and understanding of law, \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003ethe notice of show cause has to be issued within three or five years\r\nfrom \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003ethe relevant date as explained\r\nin explanation to section 14 of Federal \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.25pt\u0027\u003eExcise Act, 2005. The notice of show cause thus can only be issued \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003ewithin the prescribed limit starting from the\r\nrelevant date.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cu\u003e\u003cspan style=\u0027letter-spacing:-.3pt\u0027\u003eIssue No. 3 \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/u\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eThe provision\r\nspecifically holds \u0027that such notice shall be \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003eissued within three years from the relevant date\u0027 while the limitation \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eof \u0027three years\u0027 was extended to five years through\r\nFinance Act, 2010 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003ew.e.f. 5th June,\r\n2010.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eIt is settled\r\nprinciple of law that limitation is always a matter or \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.55pt\u0027\u003eprocedure and no one has the right in the\r\nprocedure. Therefore, it \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003efollows that\r\nthe extension of limitation shall only effect those cases, who \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003ewere alive or pending at the time of change or\r\nextension of limitation \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eand in such\r\ncases the limitation shall stand extended by law to five years, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003ewhile cases where limitation of three years for the\r\nissuance of notice in \u003c/span\u003ethe context of relevant date had expired. Such\r\ncases shall form \u0027past and \u003cspan style=\u0027letter-spacing:.25pt\u0027\u003econcluded\r\ntransaction\u0027 and the extension of limitation cannot be used \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003efor issuance of such show cause notice. Reliance in\r\nthis behalf can be \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eplaced on case\r\nreported as Fawad Textile Mills v. CIT and cited as 2005 PTD 14. Therefore, it\r\ncan safely be observed that any show cause notice \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003eissued in cases where the limitation of three years\r\nin the context of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003erelevant date had\r\nexpired prior to 5th June, 2010 viz, effective date of Finance Act, 2011, the\r\nsame shall be unlawful and proceedings on such \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.3pt\u0027\u003enotice shall abate, while to the contrary the limitation of 5 years shall\r\n\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eapply. It is clarified that as per\r\nexplanation to section 14 of the Federal \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.15pt\u0027\u003eExcise Act, 2005 the \u0027relevant date\u0027 means the date on which the duty \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.25pt\u0027\u003ewas due under subsection (3) of section 14 and in\r\ncase where duty has \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003eerroneously been\r\nrefunded, the same shall be the date of its refund. \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eTherefore, the relevant date shall play a pivotal\r\nrule for determination of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eperiod of\r\nlimitation viz-a-viz the very issuance of notice.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eIt is interesting\r\nto point out here that while visualizing limitation \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003eof proceeding through the law maker has used the\r\nconnotation \u0027serviced\u0027 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003ewhereas for\r\nthe purposes of limitation the words \u0027shall be issued\u0027 has \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003ebeen used. Both have distinguishing features. In\r\nthe earlier situation \u0027it \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003erefers to\r\nservice of show cause notice on such person referred to in subsection (1),\r\nwhile in the latter situation it has been laid down that \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003esuch show cause notice must have been issued three\r\nyears or five years , as the case may be from the relevant date explained\r\nabove. For instance \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003ethe relevant date\r\nas per explanation was 3rd July, 2005, the notice could \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.35pt\u0027\u003ehave been issued up till 2nd July, 2008 and in\r\ncase no such show cause \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003enotice has\r\nbeen issued by such date no proceedings under section 14(1) \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.7pt\u0027\u003ecan be pressed into service. Similarly in cases for\r\ninstance where \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.65pt\u0027\u003erelevant date was 3rd\r\nJuly, 2007 the show cause notice can best be \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.4pt\u0027\u003eissued by 2nd July, 2012 viz., extended limitation. Please note that the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003e\u0027three years\u0027 limitation ought to expire on 2nd\r\nJuly, 2010 but by that time prior to expiration of limitation the period of\r\nissuance of notice \u0027 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003esupra stood\r\nextended to five years w.e.f. 5th June, 2010 by amendment ; \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003ebrought about through Finance Act, 2010.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eIt is worthwhile to\r\npoint out here that the provisions, which \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.6pt\u0027\u003ecreate or initiate a charge or fiscal liability against any person or a \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003esubject and by reason whereof a fiscal liability is\r\neither created, \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eenhanced or charged,\r\nsuch provision are charging and substantive \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n-.1pt\u0027\u003eprovisions of law, the qualification and condition attached thereto for \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003eentering and stepping therein shall always firstly\r\nbe mandatory and \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003esecondly shall\r\nalways be effective prospectively unless specifically \u003c/span\u003eprovided for or a\r\ndifferent intention expressly appears in the status. \u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003eTherefore, it can be opined that the provisions relating to service of \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003enotice qua the period of limitation subject to\r\nany extension during the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003ecurrency of\r\nlimitation shall be mandatory and non compliance thereof shall be fatal and any\r\naction taken in deviation thereof shall be nullity in \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003ethe eye of law and such action shall be bound to\r\nset at naught and strain \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003edown to\r\nearth.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.3pt\u0027\u003eNow coming to the\r\nprovisions of subsection (2) of section 14 of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n-.1pt\u0027\u003eFederal Excise Act, 2005, it is observed that under this provision of\r\nlaw, \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.15pt\u0027\u003ethe concerned officer of Inland\r\nRevenue is empowered and vested with \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003ethe\r\npower to determine the amount of duty payable by the person \u003c/span\u003ereferred to\r\nin subsection (1) along with default surcharge and penalty \u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003eunder the Act after considering the objections\r\nfiled by such person, who has been served with the notice of show cause.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.75pt\u0027\u003eHowever, it has\r\nspecifically been provided that the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003edetermination\r\nof liability referred to above has to be made within one \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003ehundred and twenty days of issuance of show cause\r\nnotice, which \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003ecan further be extend to\r\nfor maximum further period of 60 days, by \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n-.1pt\u0027\u003ethe Commissioner, by recording reasons in writing. The extension of 60 \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003edays is discretionary but the same has to be\r\nexercised, fairly, justly, \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eproperly\r\nand lawfully and the qualification of recording reasons in \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003ewriting is of immense importance, therefore, it\r\nfollows, that the reasons \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003efor\r\nextension must not be absurd but logical and fair. It is important to \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003epoint out here that the Commissioner may extend\r\nthe period for less than \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e60 days thus\r\nthe subject determination can not be made beyond the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.25pt\u0027\u003eperiod of one hundred and eighty days from the\r\ndate of issuance of show \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.3pt\u0027\u003ecause\r\nnotice. Since the provisions creates an exception, and relates to the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003edetermination of fiscal rights and obligation of a\r\nsubject, and the legislature has intentionally used the word \u0027shall\u0027 therein,\r\nmake it \u003c/span\u003eobvious that no such determination should fall beyond the\r\nspecified \u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003eperiod including the extend time.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eIt has however\r\nbeen provided that for that firstly the period \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.1pt\u0027\u003econsumed by taxpayer by seeking adjournment of the proceedings \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.3pt\u0027\u003esecondly the period in which proceedings could not\r\nbe carried out for the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003ereason of a\r\nstay order granted by any court or authority or for the reason \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003eof proceedings before ADR. Such period shall be\r\nexcluded for \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003ecalculating the period\r\nof limitation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.15pt\u0027\u003eIt is matter of\r\nimmense importance that the period consumed by \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003etaking adjournments by a subject/person must not exceed from 30 days \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003efor exclusion of days for determination of said\r\n120 or 180 days as the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003ecase may be.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eIt is also important to point out here that the first\r\nand second \u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eproviso to subsection (2) of\r\nsection 14 of the Federal Excise Act, 2005 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.15pt\u0027\u003ewere inserted through Finance Act, 2011 having effect from 1st July, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003e2011. therefore, the period of limitation in the\r\ncontext of determination \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eof payable\r\nduty shall be effective in respect of proceedings initiated or \u003c/span\u003eafter 1st\r\nJuly, 2011 and prior thereto no limitation or exclusion period in \u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003ethe eventualities provided under second proviso was\r\nprovided for \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003edetermination of duty\r\npayable under section 14(2) of Federal Excise Act, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003e2005, with the exception that show cause notice in\r\nterms of sub-\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003esection (1) of section\r\n14 of Federal Excise Act, 2005 could only be \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eissued within five years from the relevant date. Consequently the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eproceedings initiated and concluded prior to such\r\ninsertion was not \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003ecaught by the\r\nmischief of both the provisos to subsection (2) of \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003esection 14 of the Federal Excise Act, 2005.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eThe provision of\r\nsubsection (3) deals with the manner of \u003c/span\u003erecovery of duty subsequent to\r\ndetermination of payable duty, default \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003esurcharge\r\nand penalty. It has specifically been laid down that the due amount of duty\r\netc. shall be recovered in the manner prescribed in the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003eAct and rules framed thereunder. Reference in\r\nthis behalf can be made to \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eChapter\r\nXII and Rules 60 and 61 of the Federal Excise Rules, 2005 and \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003eall such recovery shall be dealt with accordingly.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eIt has specifically\r\nbeen provided in subsection (4) of section 14 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003eof the Federal Excise Act, 2005, that, where any business or activity\r\ninvolving liability to charge levy and pay duty under the Act is sold, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003ediscontinued or liquidated the amount due or\r\nunpaid under Federal \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eExcise Act, 2005\r\nshall have the first charge on the assets of such business. Meaning thereby\r\nthat in case of sale, discontinuation of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.25pt\u0027\u003ebusiness or liquidation of such business concern involving dutiable \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003ebusiness or activity the State dues under the Federal\r\nExcise Act, 2005 \u003c/span\u003eshall have first right and prerogative as to the\r\n\u0027recovery\u0027. This provision \u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eendorses the\r\nprinciple that the \u0027crown has the first right for recovery \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eof taxes\u0027. It is further important to point out\r\nhere that the above sub-\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003esection has\r\noverriding effect over all other laws enforced or anything \u003c/span\u003econtained in\r\nany other law enforced in Pakistan, for the reason the law \u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003econtained in subsection (4) of section 14 in a non\r\nobstinate provision \u003c/span\u003estarting with the connotation \u0027notwithstanding\u0027.\r\nTherefore, has an over-\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eriding effect over\r\nall the other laws enforced for the time being.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\u003c/body\u003e\r\n\r\n\u003c/html\u003e\r\n"