COMMISSIONER INLAND REVENUE (LEGAL), ISLAMABAD vs PAKISTAN LNG LIMITED — 2026 SCMR 227 SUPREME-COURT

Case information

Citation: 2026 SCMR 227 SUPREME-COURT
Court: Supreme Court of Pakistan
Year: 2026
Reporter: SCMR
Parties: COMMISSIONER INLAND REVENUE (LEGAL), ISLAMABAD vs PAKISTAN LNG LIMITED
Subject matter: Criminal
Provisions referred to: Income Tax Ordinance

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

Judgment text as reported

COMMISSIONER INLAND REVENUE (LEGAL), ISLAMABAD VS PAKISTAN LNG LIMITED. Ss.129(4), 137, 138 & 140---Constitution of Pakistan, Arts.4, 10A & 14---Adverse order passed by Commissioner Inland Revenue-Appeals---Immediate coercive recovery of tax from third parties holding money on behalf of taxpayer---Right to fair trial, due process and dignity of taxpayer. Record revealed that on the very day the appeal order was issued, the Commissioner, without first confirming that the appellate order as required under Section 129(4) of the Income Tax Ordinance, 2001 had been served upon the taxpayer, issued notice under Section 140 to the Bank demanding immediate payment by the close of the same day. Such notice was fundamentally flawed because it was issued prematurely. The Commissioner was required to ensure service of appellate decision upon the taxpayer before initiating recovery proceedings. Recovery action could not be initiated without providing reasonable time to settle the amount payable and without allowing the taxpayer opportunity to pursue further legal remedies. Failure to provide sufficient time caused injury to the dignity of the taxpayer. Right to dignity is the most central of all fundamental rights and the Income Tax Ordinance, 2001 seeks to maintain balance between tax recovery and protection of taxpayer rights. The process of recovery disregarded fundamental rights including fair trial, access to justice, dignity and due process. The Revenue Department remained unable to substantiate validity of notice under Section 140 of the Income Tax Ordinance, 2001. Appeals filed by the Department were dismissed.

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