KARACHI: The Customs Court directed investigation officer to complete investigation and submit progress report against suspect namely Muhammad Saleem, owner of M/s Hanata Trading, who caused losses to national exchequer amounting to Rs56.126 million in sales tax refunds scam.
On 3 November 2020, investigation officer stated that a registered person purchased a variety of goods/ raw materials then made zero rated supplies to various buyers although majority of these items not zero rated which resulted in creation of refunds which was not legal and apparently the refund processing officers without careful examination sanctioned refunds in haste.
He further informed the court that during the investigation, it was revealed that the sole objective of the said accused person was to claim illegal sales tax refunds on local supplies, which directly comes under the scope of tax fraud as per section 2(37) of the sales tax act, 1990, in this way accused along with other persons buyers/ suppliers have caused loss to the national exchequer to the tune of Rs56.126 million in violation of the provisions of section 2(9), 2 (37) 3, 4, 6, 7, 10, 11, 14, 22, 23, 26, 37 and 73 of the sales tax act, 1990 read with chapter-I and V of the sales tax rules, 2006 issue vide SRO 555(I)/2006 and other related laws.
After the hearing, the court took the first information report (FIR) into court and directed the investigation officer to complete the investigation and submit a progress report on the next date of hearing.
