KARACHI Investigation Officer (IO) of Corporate Tax Office (CTO) submitted first information report (SHC) before customs court against suspect namely Ahmed Ali, owner of M/s Ahmed Industries for fake/cheating of sales tax refund amount Rs11,053,782.
On 14 February 2022, investigation officer informed the court that during the investigation, it has been reported that no manufacturing activity whatsoever has been carried out on the declared premises and M/s Ahmed Industries have got themselves registered as a manufacturer with the sole intention of causing loss to national exchequer by way of claiming fake/ bogus input and refund of sales tax amount.
Investigation officer added that accused and others, were therefore, called upon to show cause as to why not action under section of the sales tax rule, 2006 read with section 11(3) of the sales tax, act 1990 may be taken against them for committing tax fraud within the meanings of section 2(37) of sales tax, act 1990 for consistently claiming illegal input tax and sales tax refund and fraudulently claiming to be a manufacture of zero items. In clear violation section 10 of the sales tax act, 1990.
He further informed the court that accused persons are involved in the scam of issuance, flying invoices claiming fake input/ refund or flying invoices without any physical transfer of goods by the way of obtaining unlawful/ fraudulent input tax adjustment and proceed of issuance of fake sales tax invoices is connivance of other suppliers/ buyers in the supply chain and not existent at the declared business premises.
Investigation officer said that first information report is lodged accordingly, further investigation is in progress, therefore, court may grant time to submit a progress report.
After the hearing, court granted time and directed him to complete investigation and submit progress report for next date of hearing.
