Law: Sales Tax Act, 1990

Section: 8B

Law: Constitution of Pakistan, 1973

Section: 199

Sales Tax Act (VII of 1990)---S. 8B---Constitution of Pakistan (1973), Art.199---Constitutional petition---Allegation of adjustment of input tax on the basis of fake invoices against the petitioner---Department pressed the petitioner to pay Rupees one million in order to save himself by showing muscles of the Revenue---Validity---Matter involved, in the present case, was of criminal nature, the invoices the petitioner had used for the purposes of availing input tax being fake, the Revenue had the tight to probe into the matter and finally find out the culprit behind---High Court, however, observed that nobody could be asked to pay taxes before completing adjudication proceedings---Demand/collection of tax, in circumstances, was totally illegal, being without an adjudication order---Direction was issued to the department by the High Court to complete the inquiry with regard to the fake invoices and illegal adjustment of input tax etc., expeditiously, strictly as per law and rules and no harassment be caused to the petitioner. JUDGMENT KHAWAJA FAROOQ SAEED, J.---This judgment will dispose of Writ Petition No. 8323 and Writ Petition No. 8049 of 2009 as the common questions of law and facts are involved in both the writ petitions. 2. The brief facts of the case are that the petitioner company was -registered in the Sales Tax Department on 24-11-2004 as manufacturer-cum-importer and exporter. The business was carried on till 12-11-2008 and during the period substantial amount of sales tax was paid by him. Due to international economic crisis the petitioner decided to de-register itself and made an application to the Federal Board of Revenue for the purpose. A thorough audit was conducted by the Regional Tax Office, Gujranwala, and the report was submitted to the Federal Board of Revenue vide letter dated 12-11-2008. The petitioner was de-registered as a result of said audit. 3. On 20-11-2008 the petitioner was raided by the respondents. He was orally informed of adjustment by him of some input tax which in their opinion was on the basis of fake advices. The petitioner challenged the same. However, he was pressed to pay rupees one million in order to save himself by…

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