Law: Central Excises and Salt Act (I of 1944)

Section: 32

Law: Sales Tax Act, (III of 1951)

Section: 3(4)

(a) Central Excises and Salt Act (I of 1944) First Sched., Item 32, Sales Tax Act (I1I of 1951), S. 3(4), second proviso and Central Excise Rules, 1944, rr. 9, 52, 52A & 229Decision to post Central Excise Staff in Plastic Factories for recovery of sales taxHeld, not without lawful authority. (b) Central Excises and Salt Act (I of 1944 First Sched., Item 32, Sales Tax Act (III of 1951), S. 3(4), second proviso and Central Excise Rules, 1944, rr. 9, 52, 52A & 229No allegation made of plastic goods seized having been removed or of being removed or loaded for removal from place of storageSeizure of goods, held, not lawfulGoods ordered to be released on payment of sales tax. Date of hearing: 1st October, 1979..                                                                                                                 JUDGMENT Am MUHAMMAD Y. AKHUND, J.This judgment will also dispose of Constitutional Petition No. D910 of. 1979. 2. Plastic goods were subject to payment of excise duty under item 32 of the First Schedule to the Central Excise and Salt Act, 1944. By Notification No. SR. 2(1);78 dated 1st January, 1978, these goods were exempted from payment of excise duty. But Sale Tax in respect of these goods is, however, payable under the Sales Tax Act, 1951. By Notification No. 50/19CET/78 dated 11th October, 1978, sale tax is made recoverable in the same manner as duty of excise, by virtue of second proviso to subsection (4) of section 3 of the Sales Tax Act, 1951. Consequently, the Central Boatd of Revenue has directed the Central Excise Staff to be posted in the factories of plastic goods which are exempted from excise duty. Petitioners have challenged this decision to post excise staff as illegal and ultra vires. 3. Second proviso to subsection (4) of section 3 of the Sales Tax Act, 1951, which empowers Board of Revenue to direct that the sales tax be recovered in the same…