DIRECTORATE OF INTELLIGENCE AND INVESTIGATION-FBR, through Director vs TAJ INTERNATIONAL (PVT

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

DIRECTORATE OF INTELLIGENCE AND INVESTIGATION-FBR, through Director VS TAJ INTERNATIONAL (PVT.) LTD. Ss. 3, 11 & 37-a---Recovery of sales tax---Power to arrest and prosecute---Principle---authorities were aggrieved of quashing of FIRs by High Court registered against respondents/taxpayer for initiating criminal proceedings without determination of tax liabilities---Validity---Criminal penalties are linked with tax loss or amount of tax involved and tax due---Instead of providing for imprisonment or fine (ordinarily a certain sum of money) or both as punishment, fine under Sales Tax act, 1990 requires taxpayer to pay the tax loss or amount of tax involved and tax due, thereby indirectly criminalizing, recovery of tax due---Measure of sentence is linked with amount or loss of tax involved and tax due and prima facie, cannot be imposed unless there is some determination or duly assessed tax liability of sales tax due through the processes of assessment for adjudication as per law---Such linkage, uses the tool of imposition of penalty as a mode of recovery of tax---Criminalization under Sales Tax act, 1990 goes beyond the pale of retribution and deterrence and is principally focused on recovery of tax---Without investigative audit or issuance of show cause notice or providing opportunity to explain the matters, registration of FIR, initiation of criminal proceeding and arrest of registered person was without jurisdiction and lawful authority---Prosecution was to follow adjudication and assessment of tax under section 11 of Sales Tax act, 1990 therefore, pre-trial steps including arrest and detention could not be given effect to unless tax liability of taxpayer was determined in accordance with law---Supreme Court declined to interfere in judgments/orders passed by High Court---appeal was dismissed.

DIRECTORATE OF INTELLIGENCE AND INVESTIGATION-FBR, through Director vs TAJ INTERNATIONAL (PVT — 2025 PTD 1270 SUPREME-COURT

Case information

Judgment text as reported

Other judgments reported in 2025 PTD