Lahore:Lahore High Court (LHC) has remarked suspending the Sales Tax Number (STN) without hearing any one is violation of the constitution.

A 2-member bench of LHC comprising Justice Hassan Nawaz Makhdoom and Justice Muhammad Ajmal Zahid while declaring the order for blacklisting the textile mills has directed to restore STN and Registration forthwith.

The court dismissed FBR appeal and upheld Appellate Tribunal (AT) decision maintaining that suspending sales tax number of anyone without hearing is gross violation of the constitution.

The business of any citizen or institution can not be shut by blacklisting them merely on the basis of suspicion or allegation.

The court made it clear in the decision solid evidences are must for proving allegation of tax fraud. Tax authorities are bound to law and they cannot be allowed to take arbitrary steps. Suspension of sales tax number does not mean that any business be blacklisted without meeting legal requirements. Constitution allows every citizen to do business within the parameters of law. The business rights of any citizen or institution cannot be affected merely on the basis of allegations.

The court further maintained raising new legal points in appellate tribunal to seek justice is a legal process. High court can review legal points during hearing of appeal. However facts cannot be reviewed afresh.