KARACHI: The Customs Court directed investigation officer to complete investigation and submit final progress report against owner of M/s KZ Industries who are booked for commission of tax fraud by obtaining sales tax refund on the strength of fake and flying invoices and false zero-rated supplies without having any manufacturing facility.
On 7 July 2021, investigation officer of Commissioner Inland Revenue Zone-I Regional Tax Office, Karachi informed the court that on credible information, a first information report (FIR) has been lodged against the above mentioned suspect and others registered and un-registered persons who are directly, indirectly, knowingly, dishonestly, fraudulently and without any lawful excuse are the beneficiaries and whose criminal negligence and connivance by any act or caused to do any act, omitted to take any action including the making of supplies and taxable goods without payment of sales tax leviable under sales tax act, 1990, claiming illegal sales tax refunds on the strength of fake/flying invoices, having committed tax fraud as defined under section 2 (37) of the sales tax act, 1990.
he further informs the court that accused persons violated section 2 (2) 2(16) 2(17) 3, 6, 7, 8, 10, 22, 23, 26 and 73 of the sales tax act 1990 read with sales tax refund rules, 2006 and punishable under section 33(i) 33(13) of the sales tax act, 1990 and they evaded amounting to Rs9,036,512 to the national exchequer. After the hearing, court directed investigation officer
