Law: Sales Tax Act, 1990

Section: 3,34

Sales Tax Act (VII of 1990)---Ss. 3 & 34---Scope of tax---Production and supply of cotton lint--­Determination of supply of cotton seed---Supply of cotton seed was determined on the basis of supply of cotton lint---Short paid amount of sales tax was demanded ---Assessee contended that besides cotton lint produced, same was also purchased from the market---Department arbitrarily worked out the quantity of cotton seed produced on the basis of the formula which was not disclosed to them and order was passed ex parte without serving show-cause notice---Validity---Order was passed ex parte without having the assessee's written reply to the show­ cause notice on record or granting personal hearing---Formula of produc­tion of cotton seed had been applied to determine its actual production but neither there were any details about the same. in the order nor Department ,had been able to produce the same---Impugned order lacking necessary details, not being a speaking order, was not sustainable in the eyes of law--Order had been passed ignoring the basic principles of natural justice by condemning the assessee unheard and as such case needed to be heard afresh at original stage of adjudication---Appellate Tribunal set aside the order and remanded same for a fresh decision according to law after hearing the parties and receiving the evidence which they may like to produce. JUDGMENT ZAFAR-UL-MAJEED, MEMBER (TECHNICAL).---This appeal has been filed by Messrs Shahbaz Nawab Cotton Ginners Khair Pur Road, Kehror Pacca against Sales Tax Order-in-Original No.446 of ,1999-2000, dated 14-6-2000 passed by the Assistant Collector Sales Tax, Multan. By this Border, the learned Adjudicating Officer has directed the appellants to pay sales tax amounting to Rs.437368 alongwith additional tax on the ground that the appellant unit did not correctly declare the-supplies of cotton seed produced during the years 1996-97 and 1997-98. Actual supplies of cotton seed were determined by the Department on the basis of supply of cotton lint declared by the appellant and short paid amount of sales tax worked out as aforesaid. 2. The appellants .have challenged the impugned order primarily on the…

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