KARACHI, Dec 3: In compliance with the directives of Justice Shabbir Ahmed of the Sindh High Court, the Special Judge Customs and Taxation, Salman Ansari, compounded the offence under section 37(A)(4) of the Sales Tax

Act 1990 and acquitted one Rauf Edhi from charges of tax fraud.

Counsel for the accused Aziz A. Shaikh contended that Collector Sales Tax got statutory powers to compound the offence under the Act during or even before pendency of any proceedings. The prosecutor should have followed the instructions of collector of customs since he was not the special prosecutor appointed under section 185-G of the Customs Act, 1969, nor the sub-provision was applicable in this case.

On the contrary, provisions of section 37(A)(4) of STA 90, was fully attracted.

Application of the accused under section 265-K was originally dismissed, but powers under the said section were frequently exercised by the court to prevent abuse of process.

Collector Customs Musarrat Jabeen made a statement before the High Court that tax liability was fully discharged by the accused in early 1996 besides availing amnesty under SRO 678(1)/99. Hence the department was no more interested in further prosecution.

Accordingly, prosecutor Fariduddin sought permission of the court to withdraw the complaint, which was granted.