Law: Sales Tax Act, 1990

Section: 2(14),3,3(3)(a),8,8A,8(1)(d),8(1)(ca),10 ,11,11(2),11(3),46,73

Law: Constitution of Pakistan, 1973

Section: 23,24

(a) Sales Tax Act (VII of 1990)------.----- ------.-------S. 11------.-----Show-cause notice------.-----Scope, object and contents of a valid notice. Show-cause notice, was a foundational document, which was to describe the case comprehensively, made out against the taxpayer by invoking relevant provisions of law and by making references on corroborating and solid evidence collected in support of the same. Said notice was the narration of facts along with supporting material evidence determining the offences attracted in a particular situation in meaningful and tangible manners. Show-cause notice was not a casual correspondence; or a tool; or licence to commence a roving inquiry into the affairs of the taxpayer based on assumption and speculation, but it was a document of fundamental value carrying a definitive and factual position of the department against the taxpayer. Any proceedings taken without issuing proper legal show-cause notice, would be illegal, void ab initio and without jurisdiction------.-----Valid show-cause notice, must satisfy and contain the basic legal and mandatory requirements; that notice must be properly served on the concerned taxpayer and must give sufficient time to enable him to collect relevant information/record to defend the allegations and charges levelled therein and to prepare written submissions for its defence; that notice must contain a complete and comprehensive charge-sheet along with material evidence provided therein enabling the taxpayer to defend himself; that notice must be adequate and not merely repeat the statutory language and provisions of law; that notice must cite only those sections and legal provisions thereof which were materially relevant to the subject and objectively fixed therein with proper application of independent judicial mind and not at all in mechanical and hypothetical way; that notice not disclosing essential particulars of the charges and specific provisions of law relevant to the subject, any action based upon it would also be illegal and void ab initio; that notice must describe the case made out against the taxpayer; whether it was a case of assessment of tax or rejection of input tax…