KARACHI:- A division bench of High Court of Sindh on Thursday disposed of a constitution petition against criminal proceedings under section 37 of the Sales Tax Act 1990.
The bench was hearing a constitution petition filed by Muhammad Irfan, Proprietor of Dow Fabrics, manufacturers, importers and exporters of textile goods against Director Intelligence and Investigations , Inland Revenue and Chief Commissioner IR, Regional Tax Office (RTO-I).
The petitioner submitted that they have a clean business history and have paid all dues, taxes, duties and hence are operating and doing business legally. It was maintained that Deputy Director I&I, served a notice under section 37 of the Sales Tax Act 1990. The petitioner was asked to submit Sales Tax Invoices, Proof of Payment, Copies of Cheques, Bank Statement and Proof of Physical Movement of Goods.
The petitioner was asked to appear in person and was warned that failure to do so would expose him to an action under section 37 (a) as he would deem to be involved in tax fraud. It was maintained that the two show cause notices dated 7-6-2012 and 18-6-2012 were responded to by the petitioner wide his letters dated 12-6-2012 and 28-6-2012 along with a number of documents, yet I&I registered a FIR against the petitioner.
The petitioner impugned the criminal proceedings under section 37 before the SHC. The bench hearing the case and disposing it off, today, ordered the petitioner to appear before the Director General I&I and satisfy him as per requirement of the section 37.
According to the FIR lodged by Sanaullah Nawazani, Deputy Director I&I, the accused/petitioner along with co-accused/beneficiaries are involved in a Sales Tax fraud amounting to rupees 145,170,689.
According to interim charge sheet, 15 beneficiaries have been detected and more are to be unearthed.