Law: Provisional Collection of Taxes Act, 1931

Section: 4

Law: General Clauses Act (X of 1897)

Section: 21 , 5(3)

Law: Central Excise Rules, 1944

Section: 22 (2)

  Provisional Collection of Taxes Act (XVI of 1931)---- ---- S. 4---Finance Act (V of 1989), preamble --- Liability to pay sales tax-- Petitioner's liability to pay sales tax on processed fabrics became enforceable liability under Provisional Collection of Taxes Act, 1931, as Soon as Finance gill, 1989, was introduced in Parliament i.e. from 3-6-1989. Provisional Collection of Taxes Act (XVI of 1931) ---- S 4 --- Finance Act (V of 1989), preamble ---Taxability/liability and payability --- Difference --- While taxability or liability was the creation of Legislature, payability thereof, was enforced by executive authority after quantification --- Exemption concerned not the liability but only the payability-- Where assessee was liable to pay, he could be excused payment on account of power conferred on subordinate Legislative Authority. General Clauses Act (X of 1897)--- ----S. 21---Power to grant exemption also implied power to withdraw exemption or vary or Amend the same. General Clauses Act (X of 1897)--- ---- S.5 (3)   Central Act or Regulation would be construed as coming into operation immediately on the expiration' of   the day preceding its commencement; unless there was provision to the contrary. PLD 1983 Kar. 480 rel. Central Excise Rules, 1944--- -----R. 22 (2) --- Clearing of processed goods without payment of sales tax whether entitled petitioner to escape payment of duty --- No goods could be removed from -a-factory or ware ' house on the day appointed for the announcement of annual of supplementary budget of Federal Government-- Petitioner, therefore, could not escape payment of excise duty in spite of having removed the procesed goods from premises before the announcement of budget. N.A. Farooqui for Petitioner. Muhammad Naimur Rehman for Respondents. Dates of hearing: 17th and 18th February, 1992. JUDGMENT SYED HAIDER ALI PIRZADA, J.--The petitioner has through this petition claimed the following reliefs:- "(a) Declaration that the demand of the petitioner in respect of goods cleared prior to the budget speech of the Finance, Minister on 3-6-1989 does not attract any imposition of sales tax as s ought to be…