2012 P T D (Trib.
) 1950
[Inland Revenue Appellate Tribunal of Pakistan]
Before Syed Nadeem Saqlain, Chairperson and Sohail Afzal, Accountant Member
Messrs ADAM SUGAR MILLS LTD., BAHAWALNAGAR
Versus
COLLECTOR OF CUSTOMS, SALES TAX AND FEDERAL EXCISE, MULTAN and others
F.E. No.24/LB of 2009, decided on 23rd May, 2012.
Central Excise Act (I of 1944)---
----Ss. 3, 9 & 18---Central Excise Rules, 1944, Rr.197, 201 & 210---Evasion of Central Excise
duty---Raiding the factory premises without obtaining search warrant---Authorities on receiving
information that registered person was involved in the evasion of central excise duty and other
taxes, constituted a raiding party, which raided the factory premises of registered person and party
searched and seized record without obtaining search warrant under S.18 of Central Excise Act,
1944---Registered person was charged with violation of Ss.3 & 9 of Central Excise Act, 1944 read
with R.210 of Central Excise Rules, 1944 and was issued show-cause notice---No search warrant as
required under S.18 of the Central Excise Act, 1944, was obtained by the raiding authorities---
Section 165, Cr.P.C., dispensed with said condition subject to preparation of statements of grounds
of belief, which was also missing in the case---Section 163 of Customs Act, 1969 and S.40-A of the
Sales Act, 1990 contained similar mandatory requirements for carrying out the search without
search warrant---All said provisions of law were mandatory and the requirements contained therein,
were not fulfilled and complied with in the case---If the raid was declared illegal, the documents
and things recovered in such action would not be used against registered person---As no search
warrant was obtained as required under S.18 of the Central Excise Act, 1944, purported visit or
access by the raiding party, was illegal, without lawful authority; and issuance of show-cause notice
and subsequent proceedings, including impugned orders were also void ab initio and illegal, in
circumstances.
Collector of Sales Tax and others v. Messrs Food Consultant (Pvt.) Ltd., and Messrs Diplex Beauty
Clinic and others 2007 PTD 2356; Collector of Customs Lahore and another v. Universal Gateway
Trading Corporation and another 2005 SCMR 37; Collector of Sales Tax and Central Excise
(Enforcement) and another v. Messrs Mega Tech (Pvt.) Ltd., 2005 PTD (SC) 1933; Chairman CBR
and others v. Haq Cotton Mills (Pvt.) Ltd., 2007 PTD (SC) 1351; Messrs Ahsan Yousaf Textile
Mills (Pvt.) Ltd. Faisalabad v. Federation of Pakistan through Ministry of Finance Islamabad and 4
others 2003 PTD 2037; Messrs Food Consultants (Pvt.) Ltd., Lahore and others v. Collector
(Central Excise and Sales Tax) Lahore and 2 others 2004 PTD 1731; "N.P. Water Proof Textile
Mills (Pvt.) Ltd., through Director Karachi v. Federation of Pakistan through Secretary Revenue
Division/Chairman Central Board of Revenue Islamabad and another 2004 PTD 2952; Messrs
Zakeria Enterprises v. Muhammad Musharfa and 7 others 2005 PTD 1200 and A.R.K. Textile
through Proprietor v. Federation of Pakistan through Ministry of Finance Islamabad and 4 others
2006 PTD 494 ref.
Messrs Ahsan Yousaf Textile Mills (Pvt.) Ltd.'s 2003 PTD 2037; Messrs Food Consultants (Pvt.)
Ltd.'s case 2004 PTD 1731 and 2007 PTD 2356 rel.
Malik Muhammad Arshad for Appellant.
