Law: Sales Tax Act, (III of 1951)

Section: 3,12,12A,34,49(1)(a)

Sales Tax Act (III of 1951)--­Ss. 3, 12, 12-A, 34 & 49 (1)(a)---Demand/imposition of additional tax penalty without issuance of show-cause notice---Validity---No additional tax could be levied without issuance of show-cause notice--­Mere observation in the order that in case of failure to pay tax, provisions of S.12-A of Sales Tax Act, 1951 would be enforced, would not amount to confronting assessee with intention to levy additional tax---Such intention had to be specifically stated in show-cause notice, otherwise assessee would be deemed to have been condemned unheard. Collector Central Excise and Land Customs v. Rahim Din 1987 SCMR 1840 rel. JUDGMENT MUHAMMAD MUJEEBULLAH SIDDIQUI, J.---This appeal is directed that the order, dated 3-10-2002 passed by the learned Customs, Excise and Sales Tax Appellate Tribunal Karachi Bench-I. The appellant has formulated eight questions of law allegedly arising out of the order of Tribunal. However, we are of the opinion that following, question only arises out of the order of Tribunal. "Whether in the facts and circumstances of the case the Customs, Excise and Sales Appellate Tribunal was justified in holding that the Additional Tax can be recovered without issuance of show-cause notice?" Briefly stated the relevant facts are that, the appellant is engaged in the manufacture of storage batteries. On 22-10-1988, the appellant received a show-cause notice from Assistant Collector Central Excise and Land Customs, SITE Division Karachi which reads as follows:--- SHOW-CAUSE NOTICE Whereas it has been reported to the undersigned by the Superintendent, Central Excise and Land Customs, Baldia Circle, Karachi that Messrs Exide Pakistan (Pvt.) Limited, (formerly Chloride Pakistan Limited), A-15 Hill Street, SITE Karachi manufactured and consumed a quantity of 44,47,000 kgs. Lead oxide valued at Rs. 5,14,68,333 involving Sales Tax amounting to Rs. 64,33,541.62 for the manufacture of storage battery from 23 May 1983 to 22-5-1988 without obtaining proper Central Excise Licence and paying Sales Tax chargeable thereon as per details attached. Messrs Exide Pakistan (Pvt.) Limited, (Formerly Chloride Pakistan Limited), have thus…

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