Legal Case Summary

Case Details
Case ID 14c89556-b38a-4207-ad9c-d1c3680b31f2
Body View case body.
Case Number Complaint No. 14/KHI/ST(03)/91/2010
Decision Date May 11, 2010
Hearing Date
Decision The Federal Tax Ombudsman ruled on the complaint filed by Messrs Saleem Textile against the Sales Tax Department for failing to settle 44 deferred Sales Tax refund claims totaling Rs. 16.1 million. The Ombudsman found that the Sales Tax Department had not complied with the provisions of law and had engaged in maladministration. The complaint was upheld, and the Ombudsman recommended that the Federal Board of Revenue coordinate efforts to settle the claims within a specified timeframe. The Ombudsman noted significant delays and inefficiencies within the department, emphasizing the need for prompt action to resolve pending claims, particularly those filed before 31st December 2009. Recommendations included ensuring all claims are disposed of by 31st August 2010 and reporting compliance within stipulated timelines.
Summary In a significant ruling, the Federal Tax Ombudsman addressed the complaint from Messrs Saleem Textile regarding the non-settlement of deferred Sales Tax claims that arose due to zero-rated exports. The Ombudsman found that the Sales Tax Department had failed to act in accordance with legal requirements, resulting in financial hardship for the complainant. The Ombudsman emphasized the importance of timely resolution of claims and issued recommendations aimed at improving the efficiency of the Department. The case highlights the need for accountability and adherence to statutory timelines in tax administration, ensuring that taxpayers receive due refunds without undue delays. This ruling serves as a critical reminder of the Ombudsman's role in safeguarding taxpayer rights and promoting fair administrative practices. Keywords: Federal Tax Ombudsman, Sales Tax claims, zero-rated exports, maladministration, taxpayer rights, administrative efficiency.
Court Federal Tax Ombudsman
Entities Involved Not available
Judges Dr. Muhammad Shoaib Suddle
Lawyers Not available
Petitioners Messrs Saleem Textile, Karachi
Respondents Secretary, Revenue Division, Islamabad, Mumtaz Ahmed, Advisor, Dealing Officer, Ahmed Ali Soomro, OIR, Dr. Zulfiqar Mir, Addl. Commissioner, Rashid Ahmed, Authorized Representative
Citations 2011 SLD 223, 2011 PTD 1416
Other Citations Not available
Laws Involved Sales Tax Act, 1990, Federal Tax Ombudsman Ordinance, 2000
Sections 10, 9, 10(3)