SHC orders de-sealing of clothing brand outlet

The Sindh High Court (SHC) on Friday ordered the Federal Board of Revenue (FBR) to de-seal a retail outlet of the Western fashion brand Sowears, following the payment of a security deposit by the petitioners.

The court gave the decision on a petition filed against the FBR's sealing of the Sowears outlet over alleged tax irregularities. The court ordered each petitioner to deposit Rs500,000 with the court's bailiff as a condition for the de-sealing.

During the proceedings, Advocate Mirza Moeez Baig, representing the petitioners, argued that the FBR had acted prematurely by sealing the outlet before establishing any civil liability against his clients. He contended that the action was not legally justified and prayed to the court to order the shop's immediate re-opening.

Additional Attorney General Barrister Zia-ul-Haq Makhdoom defended the FBR's move, arguing that Sowears had been collecting sales tax from consumers but failing to remit it to the national exchequer. He further argued that similar enforcement actions had been taken against other international brand outlets nationwide and that an investigation was ongoing into tax liabilities amounting to millions of rupees.

After hearing arguments from both sides, the court directed the petitioners to submit the required security deposit and ordered the FBR to de-seal the outlet accordingly.