DEWAN SUGAR MILLS LTD. vs FEDERATION OF PAKISTAN S — 2024 PTD 681 KARACHI-HIGH-COURT-SINDH

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DEWAN SUGAR MILLS LTD. VS FEDERATION OF PAKISTAN S. 25---Federal Excise Act (VII of 2005), S. 45---Access to record and documents---Scope---Notice can be issued only to call record under S. 25(1) Sales Tax Act, 1990 or S. 45(1) of Federal Excise Act, 2005, without audit selection---It may well be that Commissioner requires tax-payer to produce certain record or documents to explain or substantiate an entry in his tax return without selecting him for audit at that stage. Citation Name: 2024 PTD 681 KARACHI-HIGH-COURT-SINDH DEWAN SUGAR MILLS LTD. VS FEDERATION OF PAKISTAN Ex visceribus actus---Connotation---Principle Ex visceribus actus means that every part of statute should be construed with reference to context and other provisions of the statute. Citation Name: 2024 PTD 681 KARACHI-HIGH-COURT-SINDH DEWAN SUGAR MILLS LTD. VS FEDERATION OF PAKISTAN S. 25---Federal Excise Act (VII of 2005), Ss. 45 & 46---General Clauses Act (X of 1897), S. 24-A---Specific Relief Act (I of 1877), Ss.42 & 54---Suit for declaration and injunction---Ex visceribus actus, principle of---Applicability---Access to record and documents---Conducting of audit---Non-speaking order---Plaintiff companies were aggrieved of notices issued by authorities selecting their cases for audit purposes---Validity---Words "on the basis of the record, obtained" in S.25 of Sales Tax Act, 1990, are only stipulating that officer of Inland Revenue authorized by Commissioner may "conduct" audit on the basis of record obtained under S. 25(1) of Sales Tax Act, 1990 and not that the selection for audit in all cases can only be after obtaining such record---For the purposes of an audit, Ss. 45(1) and 46(1) Federal Excise Act, 2005, are also to be construed ex visceribus actus---Provision of S. 46(1) of Federal Excise Act, 2005, is only stipulating that audit may be "of the records and documents of any person registered under the Act", and not that selection for audit in all cases can only made be after obtaining record of registered person---Giving of reasons by Commissioner for selecting a person for audit was nonetheless implied in S. 25 of Sales Tax Act, 1990 and S.45 read with S. 46 of Federal Excise Act, 2005---This was implicit in the very act of calling upon registered person to produce his record or documents---High Court declared that notices issued by Commissioner Inland Revenue to plaintiff companies under S. 25 of Sales Tax Act, 1990, selecting plaintiff companies for audit, were unlawful for failing to disclose reasons---High Court set aside notices issued to plaintiff companies by authorities as the same were of no legal effect---Suit was decreed accordingly.

DEWAN SUGAR MILLS LTD. vs FEDERATION OF PAKISTAN S — 2024 PTD 681 KARACHI-HIGH-COURT-SINDH

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