Karachi: NAB barred from pursuing tax case
KARACHI: The Sindh High Court on Monday barred the National Accountability Bureau (NAB) from proceeding against the director of a jewellers’ firm for the alleged non-payment of taxes.
Petitioner Mohammed Kamran Khan of Tessori Trading Company (Pvt) Limited approached the court against a NAB notice alleging that the firm had imported a huge quantity of gold for making ornaments for re-export, but had utilised one-third of it within 60 days of the import, thereby violating the stipulation contained in the relevant notification for tax rebate.
Through former attorney-general Makhdoom Ali Khan, the petitioner submitted that the bureau had nothing to do with the assessment of tax liability. Therefore, the NAB demand and an earlier order of an accountability court in favour of the bureau inquiry should be declared unlawful.
Deputy attorney-general Rizwan Ahmed Siddiqui and NAB counsel Ainuddin Khan submitted that while the bureau had no authority to issue a demand notice, it could probe tax evasion.
Allowing the petition by a short order, a division bench comprising Chief Justice Mohammed Afzal Soomro and Justice Farrukh Zia Shaikh said: “The demand of duty and taxes as per the impugned letter dated 19.12.2006 issued by respondent No 2 (NAB) and the order dated 17.11.2005 of the accountability court are declared to be illegal, arbitrary and without any lawful authority. Further proceedings by NAB in the matter are prohibited. The nazir of the court is directed to return the passport of the petitioner and discharge the security furnished by him forthwith.”
The complete article can be found at Dawn News.