- IHC Justice Babar Sattar terms probe into a sales tax fraud case an excess of authority, directing a copy of court’s order be sent to FBR chief
ISLAMABAD: The Islamabad High Court (IHC) on Wednesday probe into a sales tax fraud case as an excess of authority and granted bail to the a co-accused against the surety bond of meagre Rs100.
IHC Justice Babar Sattar granted bail to co-accused Shahid Hussain Khawaja in the Rs3.20 billion sales tax fraud case, declared the tax department’s probe as an excess of authority.
Justice Sattar also directed for sending a copy of the court’s order to the Federal Bureau of Revenue’s (FBR) Chairman.
According to the verdict, the manager of a bank was arrested for helping in opening account at power company branch. It said that the state did not provide any material regarding the petitioner’s involvement in the tax fraud crime.
The court observed that the tax department did not determine the tax due on the taxpayer as per the law. Moreover, the verdict said that the tax department arrested the petitioner in violation of the Lahore High Court’s verdict.
The tax department initiated criminal proceedings despite being aware of the LHC’s verdict, said the IHC, adding that the FBR chairman should distribute the copies of the LHC and IHC’s judgments to the tax officers.
The court said in case of violation, the tax collection authority and the tax officers will face action for misuse of powers.
The IHC further remarked that the legal and police powers delegated to public officials should be exercised in accordance with the law.
