The Islamabad High Court has granted bail to Shahid Hussain Khwaja, a bank manager from Karachi, in a Rs. 3.2 billion sales tax fraud case, requiring only a Rs. 100 surety bond.
The court ruled that the Federal Board of Revenue (FBR) acted beyond its authority and violated legal procedures when initiating the case.
In a detailed 10-page judgment, Justice Babar Sattar stated that the tax department’s actions were outside its legal limits and directed the FBR Chairman to review the court’s decision. The court also warned tax officials of future action if they break the law.
Khwaja was accused of helping a private company open accounts for fraudulent activities. However, the court found that the State did not provide enough evidence to prove his involvement in the tax fraud.