ORACLE SYSTEMS PAKISTAN (PRIVATE) LIMITED vs PAKISTAN, through Secretary Revenue and Ex Officio Chairman Feder

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ORACLE SYSTEMS PAKISTAN (PRIVATE) LIMITED VS PAKISTAN, through Secretary Revenue and Ex Officio Chairman Federal Board of Revenue, Islamabad S.14---Federal Excise Duty Rules, 2005, Rr. 48(6), 60(1)(b)(d) & 70(2), proviso---Constitution of Pakistan, Arts. 24 & 199---Constitutional petition---Government dues---Coercive measure---Notice of recovery, non-issuance of---Alternate and efficacious remedy---Petitioner company assailed Recovery Notice issued by Deputy Commissioner Inland Revenue to Bank for forcible recovery of government dues from bank account of petitioner company---Plea raised by respondents authorities was that in view of alternate remedy, constitutional petition was not maintainable and refund could be claimed by petitioner company---Validity---Upon disposal of appeal, Commissioner Appeals was obligated to communicate his order to petitioner company pursuant to R. 48(8) of Federal Excise Duty Rules, 2005---Sixty day period for filing of appeal before Appellate Tribunal Inland Revenue was to commence from receipt of such order---No recovery proceedings could be initiated for thirty days after government dues were adjudged not from date of communication of Commissioner Appeals---Such period of time which allowed assessee to discharge liability without need for referring authority to resort to coercive measures would become meaningless, if no notice of demand pursuant to adjudication of Government dues was served upon him---Coercive measures would be unjustified without giving the assesse, opportunity to satisfy the demand---Taxpayer would not have the chance to satisfy the demand unless he had knowledge that appeal filed by him was dismissed by Commissioner Appeals---Facility of requesting payment in installments before initiation of recovery proceedings as provided under first proviso to R.71(2) of Federal Excise Duty Rules, 2005, would also not be available to the defaulter unless he had been put on notice---Petitioner company must have notice prior to initiation of recovery proceedings---Claiming refund if and when Appellate Tribunal Inland Revenue decides in favour of taxpayer is not an adequate or efficacious remedy where taxpayer has been deprived of his property without due process of law which is a violation of his fundamental right as enshrined in Art. 24 of the Constitution---High Court declared recovery notice as well as recovery pursuant thereto to be unlawful and of no legal effect, resultantly the same was set aside---High Court directed Deputy Commissioner to ensure that amount recovered from petitioner company's Bank was reimbursed to petitioner company, as obtaining of pay orders by Deputy Commissioner from petitioner company's Bank was unlawful---Constitutional petition was allowed accordingly.

ORACLE SYSTEMS PAKISTAN (PRIVATE) LIMITED vs PAKISTAN, through Secretary Revenue and Ex Officio Chairman Federal Board of Revenue, Islamabad S — 2024 PTD 105 ISLAMABAD

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