KARACHI, Feb 22: The excise and taxation department has issued a show-cause notice to a local distillery for evading government dues, and causing a loss of Rs 1,63,03,500 to the government exchequer.

The distillery was asked to show-cause, within 14 days as to why its license may not be cancelled due to alleged violation of the conditions of the license.

The distillery had shown its sale during 2003-2004 as 51,380 cases. While the closing balance on July 1, 2004, should have been 5781 cases, the management had shown 2158 cases, causing a loss of 43,476 bottles.

The notice said it transpires that the distillery allegedly violated the license conditions, which may entail suspension or cancellation of license under Article 19 of Prohibition (Enforcement of Hadd) Order 1979.

It said if the reply was not found satisfactory or does not account for the shortage/excess of production declared in relevant record, the competent authority may initiate legal action. -APP