SHAHID HUSSAIN KHAWAJA vs State Ss — 2025 PTD 773 ISLAMABAD

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SHAHID HUSSAIN KHAWAJA VS State Ss. 2 (37), 11, 33, Table, Column No. 1, Srl. 11, 13 & 37(a)(iv)---Criminal Procedure Code (V of 1898), S. 497---Constitution of Pakistan, Art. 10A---Tax fraud---Bail, grant of---Actus reus and mens rea---Bail bond, quantum of---Due process of law---Compoundable offence---Effect---Accused was bank manager who was arrested in present case for sales tax fraud to the amount of approximately Rs.3.2 billion---Role attributed to accused was of aiding and abetting taxpayer company by opening its accounts in his branch---Validity---Actus reus for an offence under S. 33 is failure of a taxpayer to discharge its tax liability found to be due---There exists no actus reus till after the tax due has been determined through assessment process prescribed under Sales Tax Act, 1990---Question of mens rea can therefore not arise till after the guilty act is found to have transpired---Offenses under S. 33 of Sales Tax Act, 1990 are not thought crimes---Where there is no failure to discharge tax liability as duly determined under Sales Tax Act, 1990 no criminal liability can be imagined or founded---Determination of civil liabilities, as required under Art. 10A of the Constitution must be the product of due process---Such process takes time and bestows on citizen the right of appeal which does not entitle the state to ride roughshod over the Constitutionally guaranteed rights of citizens, including their right to liberty and dignity---Offences mentioned in FIR were compoundable in terms of S. 37A(4) of Sales Tax Act, 1990---Accused was not named in FIR, which alleged that taxpayer was liable for tax fraud for seeking tax credits and/or tax benefits on the basis of fake sales tax invoices---No assessment of tax due by taxpayer was undertaken under S. 11 of Sales Tax Act, 1990---It was prior to determination of such tax liability that pre-trial steps of arrest and detention had been taken by tax department in breach of law---High Court found accused entitled to release on bail, subject to furnishing bail bond for a sum of Rs.100/- (One hundred)---Application was allowed, in circumstances.

SHAHID HUSSAIN KHAWAJA vs State Ss — 2025 PTD 773 ISLAMABAD

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