SHC declares FBR officers’ appointment to monitor private business null and void

KARACHI: The Sindh High Court (SHC) on Saturday declared a Federal Board of Revenue (FBR) office order appointing officers to monitor a private business as null and void.

During the hearing, the SHC observed that the FBR’s authority to appoint officers for monitoring purposes is not unlimited and is subject to conditions prescribed under the law.

The court noted that the Sales Tax Act allows the FBR to appoint officers for monitoring, but such powers are subject to legal safeguards and restrictions designed to prevent misuse.

The petitioner’s lawyer argued that the FBR had deployed officers at a business premises following an unlawful raid, adding that the impugned office order violated the law and principles laid down by the Supreme Court.

He maintained that monitoring orders must specify reasons and be issued for a defined period.

It was further argued that the FBR had issued a general order directing the monitoring of seven different business entities without providing specific justification or duration.

The FBR counsel, however, contended that under the Sales Tax Act, the authority has the power to appoint officers for monitoring purposes and is not legally bound to specify detailed reasons or time limits in every case.

The court observed that while the law permits monitoring to prevent tax evasion and fraud, such measures must be for a reasonable duration and in accordance with legal safeguards.

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The SHC noted that the FBR failed to provide a satisfactory explanation regarding the purpose and duration of the monitoring arrangement.

The court further held that statutory safeguards exist to prevent the misuse of monitoring powers and observed that the impugned office order has legal defects.