LAHORE: The Lahore High Court (LHC) has declared that the Federal Board of Revenue (FBR) cannot issue search warrants for corporate taxpayers in cases where any sales tax proceedings are not pending with the department.
The LHC order has decided writ petition No.80210/2022, as common questions of law and facts are raised in both these writ petitions. These constitutional petitions were filed on the ground that there are no proceedings pending against the petitioners in both these petitions (petitioners), however, search warrants were issued under section 40 of the Sales Tax Act, 1990 (Act) vide impugned orders dated 10-11-2022 and 18-05-2023 (impugned orders) in both these constitutional petitions.
According to an order issued by the LHC, the petitioners (Private Limited Companies) have challenged the impugned orders under section 40 of the Sales Tax Act, mainly on the ground that in absence of any pending proceedings, orders under section 40 of the Act cannot be passed.
