KARACHI: The Customs Court issued notices to investigation officer of customs department on petition filed under section 265-K Cr.PC for acquittal of Zulfiqar Ahmed, director M/s Universal Industrial Corporation, who was booked in fake/ flying invoices case.
On 22 September 2020, counsel for the accused persons argued that in the instant case FIR was lodged against the applicant and others in the year 2011 without determining the tax liability as is required under section 11(5) of the sales tax act, 1990.
He further submitted that under section 11(5) of the sales tax act, 1990 the officer of Inland Revenue is required to issue show cause notice of the relevant date to the persons in default specifying the grounds on which it is proceed against him and since show cause notice was issued after lapse of prescribed period of five years no recovery proceedings can be initiated against the accused.
He stated that against the purchases the applicant made payments to the suppliers through cross cheques as required under section 73 of the sales tax act, 1969 and the banks confirmed the credit of the amounts to the suppliers’ accounts.
It is stated that in view of the payments to the suppliers through cross cheques it cannot be presume that invoices on the basis of which input tax was claimed by the applicant were bogus/flying.
He pleaded the court to consider the above mentioned facts and grounds for acquittal of applicant at this stage of the case as there is no possibility of conviction of the accused even if entire evidence in possession of the prosecution is adduced in the case.
According to the prosecution, during the tax period from July 2006 to July 2009 the firm of the applicant was found involved in the purchases/ issuance of fake invoices and fraudulent adjustment of illegal/ inadmissible input tax on the basis of fake invoices, it is alleged that firm of the applicant claimed inadmissible input tax on the basis of fake/flying invoices amounting to Rs1,26,20,917 issued by various suppliers namely M/s Shamim Enterprises, M/s M. Mughal & Co, M/s Anas Trading Co and M/s Altaf Associates.