KARACHI: The customs court directed investigation officer of Commissioner Inland Revenue, Zone-I to complete investigation and submit a progress report against suspect namely Fazal Momin, proprietor of M/s K. P Chemical & Suppliers who is booked in a case of allegedly tax fraud scam.
On 11 February 2022, during the hearing, investigation officer informs the court that director (I&I-IR HQs) Islamabad investigated suppliers of M/s K. P Chemicals & Suppliers, which revealed that their suppliers were actually issuing fake invoices to each other.
M/s K.P Chemicals claimed input tax invoices of M/s Hakimi Enterprises claimed input tax of Shah Enterprises. As soon as this information reached in the regional tax office the refund claims of M/s K.P Chemicals & Suppliers immediately stopped and the sales tax registration was blacklisted since the date of registration.
He added that refund profile of the registered person revealed that Rs 46,459,492 was refund to the registered person against their claims of Rs 75,274,943. The scrutiny of the suppliers of the registered person confirmed that registered person committed tax fraud as mentioned in definitions under section 2 (37) of the sales tax act, 1990 by getting refund on fake invoices.
Hence, registered person was found liable to pay the amount refunded to along with default under section 34 and 100% penalty under section 33 (13) of the sales tax act, 1990.
After the hearing, court directed investigation officer to complete investigation and submit a progress report for next date of hearing.
