Peshawar: The Peshawar High Court (PHC) has taken serious notice of alleged unlawful and coercive tax recovery measures adopted by tax authorities, observing that the matter warrants judicial scrutiny in view of settled law and the constitutional safeguards laid down in the Pakistan LNG Limited case.
In an interim relief order, the Court suspended the operation of factory sealing and bank account attachment notices, and issued a notice to the Federal Board of Revenue (FBR) to submit its response.
Abbottabad: The PHC also observed that officers of the Directorate General of Intelligence and Investigation (Inland Revenue), Peshawar, are not empowered to recover sales tax liabilities.
It is reliably learnt that counsel for the petitioner argued that the respondents had illegally resorted to coercive recovery of an alleged tax demand in clear violation of Sections 138 and 140 of the Income Tax Ordinance, 2001. The petitioner further contended that the impugned actions were taken in disregard of the mandatory requirements of due process, as guaranteed under Article 10-A of the Constitution.
Reliance was placed on the judgment in Pakistan LNG Limited v. FOP (2022 PTD 1763), subsequently upheld by the Supreme Court of Pakistan in Pakistan LNG Limited v. FOP (2025 SCP 267), to assert that coercive recovery without lawful authority and adherence to due process is impermissible. After hearing the submissions, the Court observed that the points raised require consideration.
Consequently, the Court issued notice to the respondents, directing them to submit para-wise comments within a fortnight.
