Islamabad, Jan 2: The Islamabad High Court (IHC) granted bail to a branch manager accused of aiding tax fraud, cautioning the Chairman Federal Board of Revenue (FBR) against actions that breach the legal precedent set by Taj International (Pvt.) Ltd.
Key Points from the Judgment:
- The petitioner was arrested under Section 2(37) of the Sales Tax Act, 1990, accused of aiding Kineses Energy and Power Innovations (Pvt.) Ltd in evading Rs. 3.2 billion in sales tax.
- The IHC ruled the arrest violated the law upheld by the Supreme Court on December 4, 2024, in Taj International (Pvt.) Ltd.
- The court emphasized that tax officials abusing their powers undermine constitutional rights, including liberty, dignity, and due process.
Directives to FBR:
- A copy of the judgment is to be sent to the Chairman FBR to ensure compliance with the Sales Tax Act and the precedent.
- Tax officials must exercise powers as a trust and avoid actions amounting to a colorable exercise of authority.
Bail Details:
The petitioner was granted bail upon furnishing bonds of Rs. 100, with the option of depositing cash surety.
The IHC criticized lower courts for failing to uphold the petitioner’s fundamental rights and urged the trial court to assess the legality of proceedings in line with the Taj International ruling.
