The Supreme Court has declared criminal proceedings against taxpayers without determining sales tax liabilities as illegal. It stated that initiating criminal action at the preliminary stage is against the requirements of justice.
A three-member bench of the Supreme Court has issued a detailed verdict. It held that before initiating criminal proceedings against any taxpayer, determining the payable tax and granting the right to appeal are constitutional requirements. Granting the authority for criminal action under an FBR SRO is contrary to law and the Constitution.
The court termed the direct registration of cases by the FBR on charges of tax evasion as an overreach of authority. According to the detailed judgment, arrests based solely on notices, investigations, or inconclusive information are against constitutional principles. The decisions of all relevant High Courts have been upheld, and appeals have been dismissed.
The Supreme Court declared all FIRs, arrests, and trials null and void. All criminal proceedings are to be halted immediately. Following the court’s decision, a wave of relief spread among citizens who had been subjected to illegal actions.
