LHC Restricts Federal Tax Ombudsman In Tax Jurisdiction Case

News Desk
LAHORE: The Lahore High Court (LHC) has set aside concurrent orders issued by the Federal Tax Ombudsman (FTO) and the President of Pakistan, ruling decisively that both authorities lack jurisdiction to entertain complaints regarding the delayed adjudication of seized commercial goods.
A division bench comprising Justice Jawad Hassan and Justice Abid Hussain Chattha delivered the landmark judgement, upholding the statutory authority of designated tax forums over executive oversight bodies in tax-related disputes.
The legal battle originated when the Directorate of Intelligence and Investigation Inland Revenue in Multan raided a local business premises based on actionable intelligence, recovering 641 cartons of allegedly counterfeit and non-duty-paid cigarettes.
As representatives failed to furnish authentic invoices or duty-payment records, authorities initiated formal show-cause proceedings. Rather than responding to the statutory notices, the aggrieved dealer approached the FTO and subsequently the President’s Secretariat, bypassing established appellate mechanisms under tax laws.
Legal experts note that this judicial intervention reinforces the supremacy of specialized tax tribunals and prevents administrative overreach by executive offices into matters explicitly governed by fiscal statutes.
By delineating clear boundaries between ombudsman oversight and statutory tax adjudication, the ruling safeguards the operational integrity of the Federal Board of Revenue (FBR) and its field formations during enforcement actions against tax evasion and illicit trade.
Following this verdict, tax authorities are expected to resume unhindered adjudication proceedings against the seized merchandise. The judgment serves as a definitive precedent, discouraging litigants from exploiting alternative administrative fora to delay or obstruct routine tax recovery and anti-smuggling operations across the country.