Law: Sindh Sales Tax on Services Act, 2011

Section: 23, 75

Sindh Sales Tax on Services Act (XII of 2011)--- ----Ss. 23 & 75---General Clauses Act (X of 1897), S. 27---Assessment of tax---Exparte proceedings---Notice to taxpayer, issuance of---Expression "served by post"--Scope---Presumption of effective service, rebutability of---Scope---Principle of audi alteram partem---Inapplicability---Section 23 of the Sindh Sales Tax on Services Act, 2011 ( the Act 2011 ) prescribes the procedure for assessment of tax and its subsection (2), while prescribing the procedure to be adopted by the Assessing officer prior to determining the tax liability, categorically shows that, prior to passing "the Original Order", the Assessing Officer must give to the taxpayer a show-cause notice ; its purpose is to put the person on notice about the allegations for which the authorities intend to proceed against him and to give an opportunity to explain his position---Main object of issuance of a show-cause notice is to intimate the concerned party about nature of allegations, contravention and penal action intended to be taken against him, therefore, it is mandatorily required to be served upon the taxpayer under S. 75 of the Act, 2011---Section 75 of the Act 2011 provides procedure for service of notice, order or requisition on a person named therein either in person, through agent, by registered post, by courier service or in the manner provided for service of a summons under the Code of Civil Procedure, 1908---However, S. 75 of the Act, 2011 is required to be read in juxtaposition with S. 27 of the General Clauses Act, 1897 ( the Act 1897 ) which provides that wherever in a Provincial or a Central Statute the expression "served by post" or any other similar expression is used, then "the service shall be deemed to be affected by properly addressing, prepaying and posting by registered post a letter containing the document"---Section 27 of the Act, 1897 provides for the raising of a presumption that unless contrary is proved, the service of addressee shall be deemed to have been affected---Though, undoubtedly, under S.27 of the Act, 1897 there is a presumption that the addressee has received the…