IHC takes stern action against violation LNG case

Issues notices to high-ranking officials including FBR chairman

ISLAMABAD:

The Islamabad High Court (IHC) has taken serious notice of the persistent breach of its orders in the Pakistan LNG case, issuing notices to high-ranking officials, including the chairman of the Federal Board of Revenue (FBR), the member operations-IR, and tax employees of the Islamabad tax office.

The notices were served in response to the allegedly unauthorised recovery attempts through the attachment of bank accounts belonging to power distribution companies (DISCOS).

The court has mandated appearances for February 22 (Thursday).

Reliable sources reveal that the DISCO, after the prolonged silence from FBR/LTO Islamabad, took legal action through tax lawyer Waheed Shahzad Butt.

The petition raises concerns over the alleged tax robbery tactic, executed without proper legal procedure, and in direct violation of the IHC's binding order in the Pakistan LNG case. The petition contends that the matter had not been clarified despite previous instructions from FBR regarding the necessity of obtaining prior approval from the member operations.

Waheed Butt asserts that certain tax employees at the Islamabad tax office are openly flouting FBR instructions regarding the attachment of bank accounts of DISCOS, National Transmission & Dispatch Company (NTDC), and Central Power Purchasing Agency (CPPA).The lawyer said that the instructions issued in C. No. 6 (21) S (IR-Operations)/ 2017/ 35481-R dated 20.03.2017 have been blatantly ignored and violated by LTOs without any apprehension of accountability, a claim reaffirmed by the parent agency (FBR) on November 27, 2023.

IHC after hearing the DISCO argument issued notices to the Secretary Revenue Division, Member (Operations), Chief CIR, CIR and DCIR, Zone-II, LTO, Islamabad.

IHC order states, “The petitioner is aggrieved by recovery notices dated 22.02.2023 pursuant to which coercive recovery has been affected from the accounts of the petitioner. The learned counsel for the petitioner states that the assessment order was pending adjudication before the commissioner (Appeals), who by order dated 21.02.2023 had dismissed the petitioner’s appeal. Such order was communicated to the petitioner at 02:00 p.m. on 22.02.2023.”

However, without issuing any prior notice after the dismissal of the petitioner’s appeal or even the communication of the appeal order to the petitioner, coercive recovery was affected at 09:00 a.m. on 22.02.2023 in breach of law.

“He states that the coercive recovery is also in breach of the instructions issued by FBR to the Commissioner, by letter dated 20.03.2017 directing the Commissioners that coercive recoveries are not to be affected against discourse without the prior approval of FBR,” it said.

The court has set the next hearing for February 22, demanding reports and para-wise comments from the respondents.