LAHORE: The Lahore High Court (LHC) has declared action of Federal Board of Revenue (FBR) for confiscation of cigarettes worth Rs 10 million as null and void while hearing a case filed by Asim Shaukat, a wholesale dealer of cigarettes.
According to details, Justice Shahid Karim heard the case filed where counsel for appellant Mohsin Virk argued that a team of Inland Revenue (IR) raided the premises of Asim Shukat and confiscated the cigarettes worth Rs 10 million under the Federal Excise Rules, 2005 and Section 38 of the Sales Tax Act, adding that the act of FBR is unlawful.
Under the Sales Tax Act, the FBR is bound to send prior notice to the party for investigations before raiding the premises, he further added.
Virk further told the court that under the tax laws retailers and whole sellers are exempted from taxes, as only manufacturers and importers are bound to pay taxes. He appealed before the court to suspend the act of FBR.
On the other side, counsel of FBR argued that department took action according to the law and confiscation of cigarette is legal so court rejects the application by the appellant.
After hearing the arguments from both sides, the LHC suspended the act of FBR for confiscation of cigarette and remarks that directly use of Sales Tax Act by the FBR is unlawful.
