ISLAMABAD: A person involved in a Rs 3.20 billion sales tax fraud case was on Wednesday granted bail by the Islamabad High Court (IHC) on a surety bond of Rs 100 only.
In its judgment today, the High Court termed the department’s criminal investigation as exceeding its powers.
During the hearing, Islamabad High Court Justice Babar Sattar directed to send a copy of the court order to Federal Bureau of Revenue (FBR) Chairman Rashid Mehmood Langriyal.
According to the verdict, a bank manager was arrested for helping him open an account at a power company branch. It said that the State has not provided any material regarding the involvement of the petitioner in the crime of tax fraud.
The court also held that the tax department did not assess the tax due to the taxpayer as per law. Further, the judgment states that the tax department arrested the petitioner in violation of the judgment of the Lahore High Court.
The IHC said the tax department initiated criminal proceedings despite being aware of the LHC’s decision, adding that the FBR chairman should distribute copies of the LHC and IHC decisions to tax officers.
The court said that 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 statutory and police powers delegated to public officials should be exercised in accordance with law.