ISLAMABAD: The Directorate of Intelligence and Investigation (Lahore) of the Federal Board of Revenue has unearthed sales tax evasion of Rs4.27 billion including default surcharge. According to the assessment order released on Monday, the directorate has also imposed 100 per cent penalty for tax fraud on the registered person — M/s Innovative Biscuits (Pvt) Limited. An official announcement said the directorate carried out action against the taxpayer on receipt of credible information related to sales tax fraud under Section 38 read with Section 40 of the Sales Tax Act, 1990. Accordingly, an accused Sheikh Munir Hussain — one of the Directors of M/s Innovative Biscuits (Pvt.) Limited — was arrested. Meanwhile, the Special Judge also rejected two bail applications of the accused.