FBR Hyderabad seizes vehicles over e-invoicing violations

ISLAMABAD: The Federal Board of Revenue (FBR) has intensified its enforcement campaign in Hyderabad, with the Regional Tax Office (RTO) Hyderabad seizing multiple vehicles and consignments over alleged violations of Sales Tax laws and non-compliance with mandatory digital invoicing requirements.

According to the FBR, the enforcement action was carried out under Section 40C of the Sales Tax Act, 1990, along with provisions governing digital invoicing, Third Schedule requirements and other relevant tax laws.

Three Vehicles, Consignments Seized

During the crackdown, FBR enforcement teams intercepted several vehicles transporting goods without the required tax documentation.

Vehicle No. Z-5061, carrying a coal consignment, was seized after officials found that the shipment was accompanied by a non-digital invoice. The supplier was also reportedly classified as a non-active taxpayer in FBR records.

In another case, Vehicle No. C-1320, transporting industrial machinery, was taken into custody. FBR officials said the manufacturing unit involved in the supply was unregistered, while the vehicle lacked a valid Sales Tax invoice and other supporting documents.

Meanwhile, Vehicle No. E-2141, carrying pipes, was also seized after officials found that the consignment was accompanied by a non-digital Sales Tax invoice, allegedly violating mandatory e-invoicing requirements.

FBR Warns of Strict Enforcement

The FBR said the operation forms part of its broader drive to strengthen digital integration, documentation and transparency across the supply chain.

Officials warned that businesses and transporters involved in moving taxable goods without FBR-verified digital invoices, or in transactions involving non-active taxpayers, could face enforcement action under applicable laws.

The Board said the measures are intended to curb tax evasion, improve documentation, broaden the tax base and ensure greater transparency through its Digital Integration initiative.

Section 40C of the Sales Tax Act, 1990 provides legal authority for the seizure of goods and conveyances in cases involving tax fraud or specified violations. The Hyderabad operation comes as the FBR continues to accelerate the integration of businesses with its real-time digital invoicing system.