M/s. Prime Chemicals through its representative has impugned an order dated 5.5.2003 which has been passed by Mr. Zulfiqar Younas Deputy Collector Customs, Sales Tax and Central Excise (Adjudication), Lahore in Order-in-Original No, 10/03.
2. As a matter of fact, this order-in-original had been passed in a case of M/s. Ramzan Bakhsh Textile Mills (Pvt.) Ltd., who were before the said Court challenging the imposition of sale tax under the provisions of Section 7 of the Sales Tax Act as amended. A copy of detailed order has been placed on the file and learned for the petitioner in the present writ petition has taken this Court through it to re-enforce his argument that all the facts discussed in this order in original pertain to M/s. Ramzan Bakhsh Textile Mills Private Limited and had nothing to do in the matter of the petitioner that is Prime Chemicals.
3. The petitioner has become aggrieved in this case because of what has been said in Paragraph 22 of the order which reads as follows: This order shall also apply to the following three cases .being identical in nature: S.No, Name of the respondentsShow-cause Notice (SCN)
No,SCN DateAmount of Tax (in Rs,)
1. Rai Textile Mills Ltd.6154 19/12/02 2,37,317 Premier Leather Pakistan (Pvt.)
Ltd.6134 17/12/02 3,04,834/- Prime Chemicals 6242 24/12/0214,02,318/-
4. It is stated that the provisions of that order could not by reference be applied to the case of the petitioner whose facts were distinct and separate and these had to be separately met and argued with reference to the relevant record, otherwise it is no adjudication in law.
5. It appears that Collectorate of Customs, ST & CE (Adjudication), Lahore, has been created to adjudicate upon matters which are impugned before the said forum and who has then to determine whether the order impugned before the said forum was an order which is sustainable in law or not? All this called for a factual investigation, upon which the terms of adjudication were to be based while coming to a decision.
6. To adjudicate, necessarily implies settling a matter. This is synonymous with the word 'adjudge'.
The adjudicatory process may be before an administrative authority or before a Court of law. Even if it is before an administrative agency, the rights are to be adjudged after notice to parties affording opportunity of hearing and appraisal of record. The factual position and the finding are to be record specific. Reference in this connection may be made to the following cases:--
(i) People vs. Rave, 364, III, 72, 3 N.E. 2d 972, 975.
(ii) Allegpeny Ludlum Steel Corp. vs. Pennsylvania Public Utility Com'n, 501 Pa. 71, 459 A. 2d 1281 1221.
7. In the case of Samuel Goldwyn, Inc. vs. United Artists Corporation, C.C.A. Del., 113 F. 2d 703, 706, adjudication is defined as hearing, after notice of legal evidence on the factual issues involved.
8. Again in the case of Campbell vs. Wyoming Development Co., 55 Wye. 347, 100 P. 2d 124, 132, it was said that adjudication contemplates that the claims of all the parties thereto have been considered and set at rest.
9. Obviously, a factual inquiry based on record for purposes of adjudication had to be conducted. A bare and bald statement that the case of the petitioner and one other as referred to in Paragraph 22 of the order being identical,. the order was extendable even to them, made this no order in the eye of law as it violated the very purpose of adjudication as well as the principle of natural justice, which requires formulation of a speaking order disposing of a case reflecting a discussion of a factual position and handing down of a judgment or a finding on such basis.
10. On the touch stone of the standards laid for purposes of adjudication since remote antiquity, we find that the order under reference and as reflected in Paragraph 22 is hardly an order. It is destitute of any discussion relevant to the record of this case. It is perverse and consequently a nullity in the eye of law. It deserves to be quashed and a direction is, therefore, issued to the Deputy Collector Customs, Sale Tax & C.E. (Adjudication), Lahore, to re-write the order afresh after hearing the petitioner and to dispose of the matter in accordance with the observations made herein above and to refrain from passing such orders in serious matters in such a slip-shod manner.
11. With these observations, the writ petition is accepted.