Islamabad: Justice Babar Sattar of the Islamabad High Court granted bail to Shahid Hussain Khawaja, a branch manager of a private bank in Karachi, on a bond of Rs 100 in a sales tax fraud case of Rs 3.2 billion.
The court termed the criminal action of the tax department as an excess of authority and ordered a copy of the decision to be sent to the Chairman Federal Board of Revenue, while the magistrate’s decision to remand the accused and reject bail from the subordinate court was shameful.
The Islamabad High Court also hinted at action against the FBR and tax officials for future action in violation of the law. Justice Babar Sattar issued a written decision granting bail to Shahid Hussain Khawaja, a manager of a private bank in Karachi, which stated that the bank manager was arrested for assisting in opening an account of a power company.
The Tax Department did not determine the tax due on the taxpayer as per the law and arrested the petitioner in violation of the Lahore High Court decision and exceeded its powers by initiating criminal proceedings despite being aware of the Lahore High Court decision.
The State did not present any material to prove the petitioner’s involvement in the crime of tax fraud. The Tax Department misused its powers and violated the petitioner’s constitutional rights to privacy, dignity and equality. It is a shame that the Magistrate who granted the remand and the court who rejected the bail did not take into account the provisions of the Sales Tax Act. The court expects that the trial court will take into account the legality of this action.
