Law:

Section:

(a) Sales tax--- ----Illegal order---Scope---Action of authorities was based upon audit report which was not conducted by an unauthorized person and had emanated from illegal raid which was not permissible under law---Such action could not legally sustain. (b) Sales Tax Act (VII of 1990)--- ----Ss. 38 & 40---Constitution of Pakistan (1973), Art.199---Constitutional petition---Recovery of tax---Show-cause notice---Tax evasion---Proof---Authorities entered premises of assessee without any notice or information to her and got conducted audit on the basis of record removed from premises---Appellate authority on appeal filed by assessee, allowed re-audit by independent team---Validity---Audit team issued notices for re-audit and subsequently such proceedings were dropped and authorities issued show-cause notice on the basis of earlier audit---Re-audit proceedings were required to be completed, once it had commenced---Non-appearance or non-cooperation of party could result into ex parte proceedings against such party but dropping proceedings for re-audit was not justified, thus authorities had ignored such aspect of controversy---Representation of assessee was decided without any valid reason and reasons justifying raid were in conflict with principles laid down in s passed by Supreme Court in various cases---Representation of assessee was decided ignoring law settled by Supreme Court and it lacked element of valid reasoning, such order was declared having been passed without lawful authority and with no legal effect---High Court, in exercise of constitutional jurisdiction, directed the authorities to proceed with fresh audit through independent team of auditors, as directed by Collector---Petition was allowed accordingly. Collector of Sales Tax and Central Excise (Enforcement) and another v. Messrs Mega Tech (Pvt.) Ltd. 2005 SCMR 1166; Federation of Pakistan v. Messrs Master Enterprises (Pvt.) Ltd. 2003 PTD 1034; Messrs Ihsan Yousuf Textile Mills (Pvt.) Ltd. v. Federation of Pakistan 2003 PTD 2037; Messrs N.P. Water Proof Textile Mills (Pvt.) Ltd., Karachi v. Federation of Pakistan and another 2004 PTD 2952; Muhammad Siddique v. Federation of Pakistan and 3…

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