Allowing refund to companies: SC asks FBR to complete inquiry against officials within 15 days

ISLAMABAD: The Supreme Court (SC) on Wednesday took a strong exception to lethargic attitude of Federal Board of Revenue (FBR) in implementing its order in letter and spirit regarding initiating a regular inquiry against its officials allegedly involved in allowing refund of vouchers to some companies.

A three-member bench of the apex court headed by Chief Justice Gulzar Ahmed heard an appeal filed by the Federal Board of Revenue (FBR) against the verdict of Federal Service Tribunal, acquitting its officials allegedly involved in allowing refund of vouchers worth Rs87 million to three companies in Karachi.

Last year in September, the court directed the Board to submit report within three months regarding the outcome of inquiry being conducted against its officials involved in the matter.

The court had also directed FBR Chairman Shabbar Raza Zaidi to submit report within two weeks regarding the approval from prime minister for taking action against its officials involved in the instant matter.

On Wednesday, acting FBR Chairperson Nosheen Javed Amjid, Dr Tariq Ghani and Hafiz S A Rehman, counsel for FBR, appeared before the court. Chief Justice Gulzar Ahmed recalled to the FBR officials that the court had directed for initiating an inquiry into the instant matter.

Nosheen Javed Amjid, FBR acting chairperson, informed the court that after the approval of the prime minister, charge sheet has been issued to Ashfaq Ali Tunio, officer of BPS-21 of Inland Revenue Service (IRS) with statement of allegations, leveled against him.

She further told the court that an inquiry officer has been appointed in the matter besides deputing a departmental representative to appear before the inquiry officer and soon the inquiry will be completed.

Chief Justice, however, said that they were not sitting for hearing the stories and questioned as to why the investigation was not completed within three months given by the court. "Billions of rupees of the national exchequer were looted while the FBR has no concerns over it”, the chief justice observed. “If you have no concerns than leave your job,” the CJP asked the acting chairperson.

“If the said money had been drawn from your pocket, you would have not sit in your house for a minute”, the CJP further told the FBR acting chairperson. The chief justice further observed that FBR chairman has gone on leave. The FBR acting chairperson, however, told the court that FBR Chairman Shabbar Zaidi on sick leave. "Why and how much Shabbar Zaidi is ill, we know all”, the CJP remarked.

Meanwhile, the court directed FBR to complete within 15 days, the inquiry into the instant matter and adjourned further hearing for two weeks. As per the case, the FBR had removed Abdul Hameed Anjum, its official, allegedly involved in allowing refund of vouchers worth Rs87 million to three companies in Karachi.

The official, however, had challenged his removal before the Federal Service Tribunal (FST) which had acquitted him from the alleged charges with the ruling that no evidence was found against the petitioner to support the allegations.

Similarly, two other officials Ashfaq Ali Tuneuo, officer of Inland Revenue Service (IRS), FBR, Karachi and Ameerul Haq, Senior Auditor, allegedly involved in the matter, had also moved the Federal Service Tribunal, however, the tribunal had remanded their cases to the Federal Board of Revenue with the direction to decide the departmental appeal of both the officials.

On last hearing held on September 26, 2019, Hafiz S A Rehman, counsel for FBR, informed the court that in pursuance of its last order the FBR had constituted a fact finding committee for probing the case against the two officials.

The learned counsel had further submitted that after investigating the matter in detail, the fact finding committee had recommended initiating a regular inquiry against Ashfaq Ali Tanueo.

FBR Chairman Shabbar Raza Zaidi had informed the court that they had sent a summary to the prime minister for getting his approval for initiating a regular inquiry against the official.

Meanwhile, the court had directed the FBR to submit a comprehensive report within three months, regarding the outcome of the inquiry made against the officials, involved in the overall matter and adjourned further hearing for three months.