Karachi: Sindh High Court (SHC) while declaring the raid conducted by FBR and Customs in Karachi Export Processing Zone illegal has ordered to return seized goods. According to the counsel for the petitioner the applicant company is manufacturing tobacco and cigarettes with the permission of EPZA. FBR conducted raid under the allegation of fraud in sales tax. Customs confiscated cigarettes and other goods.

The state counsel took the plea according to FBR the returns of the company were found suspicious. Federal institutions took action on the information of tax evasion through illegal manufacturing of tobacco products.

Justice Saleem Jessar said that under Sales Tax-1990, it is necessary to seek approval of commissioner and give opportunity to the respective person to present stance before investigation into tax fraud. It is not evident from record that approval from commissioner was obtained for regular inquiry against the petitioner.

The court said permission given by the magistrate for search was not as per law. When no illegal activity came to fore during raid then the goods were seized by calling customs.

Under customs act the information regarding legal position of the goods can be obtained.

The court observed the documents related to imports presented by the petitioner prove apparently that all goods were imported legally. There is no material as such on the record that the goods were smuggled. The government officials cannot exercise the powers against the rights given by the constitution to the citizens.

SHC remarked the raid by government institutions, search warrants and seizure of goods are in clash with law. Search warrants and all the proceedings done under search warrants are declared null and void. The confiscated goods be returned to the petitioner.