| Case ID |
0b9fc6f4-74a1-4998-996c-ef39831fb300 |
| Body |
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| Case Number |
Complaint No. 1316-K of 2002 |
| Decision Date |
Jul 17, 2004 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman concluded that the complaint regarding sales tax refund was valid due to negligence on the part of the tax department. The Ombudsman directed that the case should be assigned to competent Assistant Collectors to investigate the matter thoroughly. No action was to be taken against the complainant until the investigation was completed, highlighting the responsibility of the department to ensure that registered taxpayers are not unfairly penalized while addressing fraudulent activities in the market. |
| Summary |
In the case of Messrs Welfare Trading Company vs Secretary, Revenue Division, the Federal Tax Ombudsman addressed a complaint regarding a sales tax refund application filed by the complainant. The complaint arose from the alleged issuance of fake invoices by the supplier, Messrs Shahnawaz Exports. The Ombudsman found that the tax department had exhibited negligence in investigating the supplier's registration and the authenticity of the invoices. The department was criticized for not taking timely action on the refund claim, which led to undue hardship for the complainant. The Ombudsman recommended that the department should focus on resolving issues related to fraudulent suppliers while ensuring that legitimate taxpayers are not penalized. The case emphasizes the importance of thorough investigations and accountability within tax administration. Keywords such as 'sales tax refund', 'Federal Tax Ombudsman', 'negligence in tax administration', and 'fraudulent invoices' are pertinent in understanding the core issues of this case. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Messrs Shahnawaz Exports,
Faisal Bank Limited
|
| Judges |
Justice (Retd.) Saleem Akhtar
|
| Lawyers |
Muhammad Naseem,
Farrukh Sajjad
|
| Petitioners |
Messrs Welfare Trading Company
|
| Respondents |
Secretary, Revenue Division
|
| Citations |
2005 SLD 241,
2005 PTD 1095
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
10,
10(4),
37,
37(a),
73,
2(3)(ii)
|