SUNDER MEHRAN BUILDERS vs COMMISSIONER (APPEALS-I), SINDH REVENUE BOARD, KARACHI Ss

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SUNDER MEHRAN BUILDERS VS COMMISSIONER (APPEALS-I), SINDH REVENUE BOARD, KARACHI Ss. 23 & 75---General Clauses Act (X of 1897), S. 27---Assessment of tax---Ex-parte proceedings---Notice to taxpayer, issuance of---Expression "served by post"---Scope---Presumption of effective service, rebutability of---Scope---Principle of audi alteram partem---Inapplicability---Section 23 of the Sindh Sales Tax on Services Act, 2011 ('the Act 2011') prescribes the procedure for assessment of tax and its subsection (2), while prescribing the procedure to be adopted by the Assessing officer prior to determining the tax liability, categorically shows that, prior to passing "the Original Order", the Assessing Officer must give to the taxpayer a show-cause notice ; its purpose is to put the person on notice about the allegations for which the authorities intend to proceed against him and to give an opportunity to explain his position---Main object of issuance of a show-cause notice is to intimate the concerned party about nature of allegations, contravention and penal action intended to be taken against him, therefore, it is mandatorily required to be served upon the taxpayer under S. 75 of the Act, 2011---Section 75 of the Act 2011 provides procedure for service of notice, order or requisition on a person named therein either in person, through agent, by registered post, by courier service or in the manner provided for service of a summons under the Code of Civil Procedure, 1908---However, S. 75 of the Act, 2011 is required to be read in juxtaposition with S. 27 of the General Clauses Act, 1897 ('the Act 1897') which provides that wherever in a Provincial or a Central Statute the expression "served by post" or any other similar expression is used, then "the service shall be deemed to be affected by properly addressing, prepaying and posting by registered post a letter containing the document"---Section 27 of the Act, 1897 provides for the raising of a presumption that unless contrary is proved, the service of addressee shall be deemed to have been affected---Though, undoubtedly, under S.27 of the Act, 1897 there is a presumption that the addressee has received the letter sent by registered post but such presumption is rebuttable and it is open to the party concerned to raise objection before the Court to deny the presumption by stating that he never received any notice---In the present case, the Appellant denied the presumption of effective service and the respondent / Department had produced proof of delivery of show-cause notice as well as "the Original Order", which were duly acknowledged by two persons including appellant---In such circumstances, the burden to prove such contention laid upon the appellant---Although the appellant denied proper service of show-cause notice and "the Original Order" but he did not bring on record anything supporting his contention, and he did not even mention the source of information through which he came to know about "the Original Order"---Therefore, it stood proved that appellant was duly served with the show-cause notice prior to passing "the Original Order"---Perusal of "the Original Order" showed that the same had been passed on the strength of the record available on appellant's portal and not merely because of his absence---As the appellant was duly served but he deliberately remained away from the proceedings, therefore, principle of audi alteram partem' was not applicable in the present case---In absence of any defense, despite valid service, the Assessing Officer had no other option but to proceed against the appellant ex-parte---Appeal stood dismissed.

SUNDER MEHRAN BUILDERS vs COMMISSIONER (APPEALS-I), SINDH REVENUE BOARD, KARACHI Ss — 2026 PTD 650 BOARD-OF-REVENUE-SINDH-APPELLATE-TRIBUNAL

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