USMAN ALI vs State Ss — 2026 PTD 41 KARACHI-HIGH-COURT-SINDH

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USMAN ALI VS State Ss. 2(37)(g), (h) & (k), 37-a, 37-B & 50-a---Criminal Procedure Code (V of 1898), S. 497---Tax fraud---Bail, grant of---Further inquiry---allegations against accused were that, he uploaded fake returns and invoices regarding sales tax and the tax sought to be evaded by such fraud was estimated at Rs. 36 million---In this case, the tax fraud alleged in the FIR was not committed by persons registered under the Sales Tax act or who were part of the supply chain, rather it was alleged to commit by persons who were not registered under the Sales Tax act but were involved in theft of sales tax profiles for creating fake and flying sales tax invoices for onward sale to registered persons---Therefore, the allegation against the applicant was that he was provided a PSID (Payment Slip ID generated by FBR's WeBOC System) for Rs. 100/, which was the challan for submitting revised sales tax returns and on 30-09-2024 the applicant paid the same using his Easypaisa account---It was not alleged that applicant was one who misappropriated the computer ID and password of the steel mill, or the one who generated the PSID, nor was it alleged that he uploaded the fake sales tax invoices/returns onto the system---after investigation, the co-accused was also released from custody and it was then also acknowledged in the interim challan that the person who had sent the PSID to the applicant was still under investigation---Therefore, it had yet to be ascertained whether payment made by the applicant as was with knowledge that it was intended for committing sales tax fraud---In such circumstances, it was difficult to say that offences then punishable under clauses 11 and 22 of S. 33 of the Sales Tax act would be attracted to applicant---as regards the offence punishable under clause 13(b) of S. 33 of the Sales Tax act viz. abetment in tax fraud, even if that was made out, the tax implication was less than one billion rupees---Maximum imprisonment provided for that was five years which did not fall within the prohibitory clause of S. 497, Cr.P.C.---Thus, bail became the rule and its refusal, an exception---Bail application was allowed, in circumstances.

USMAN ALI vs State Ss — 2026 PTD 41 KARACHI-HIGH-COURT-SINDH

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