| Case ID |
1f09642b-a221-49db-8712-84e3e9bf3679 |
| Body |
View case body. Login to View |
| Case Number |
Complaint No.911 of 2003 |
| Decision Date |
Feb 28, 2004 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman recommended the cancellation of the order-in-original dated 14-4-2003 issued by the Deputy Collector, Sales Tax (Adjudication), Faisalabad, due to insufficient grounds for withholding the sales tax refund. The Ombudsman directed that the refund claim of Rs.1,973,281 should be processed by the relevant officer, focusing on the provisions of sections 7 and 8 of the Sales Tax Act. Additionally, it was emphasized that the complainant must be granted access to any evidence used against them, as the refusal to provide such evidence constituted maladministration. The Ombudsman concluded that the issue of physical transfer of goods falls within the scope of the Sales Tax Act, and the Deputy Collector should re-examine all relevant aspects of the case. |
| Summary |
This case involves a complaint filed by Messrs ARAFATEX INDUSTRIES (PVT.) LTD. against the Secretary of the Revenue Division regarding the withholding of a sales tax refund amounting to Rs.1,973,281. The Federal Tax Ombudsman scrutinized the actions of the Deputy Collector and found that the basis for rejecting the refund claim was flawed. It was highlighted that the complainant had provided all necessary documentation and had made payments via cross cheques, yet their requests for evidence against them were denied. The Ombudsman underscored the importance of transparency and fair administration, ruling that the complainant should have access to evidence that could affect their case. The decision reinforces the principles of accountability and due process in tax administration, ensuring that taxpayers are treated fairly under the law. This case is significant for businesses seeking refunds under the Sales Tax Act, emphasizing the need for proper documentation and the right to challenge decisions made by tax authorities. Current trends in tax compliance and administrative fairness are crucial as businesses navigate complex tax regulations. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
SECRETARY, REVENUE DIVISION,
Messrs ARAFATEX INDUSTRIES (PVT.) LTD.
|
| Judges |
JUSTICE (RETD.) SALEEM AKHTAR
|
| Lawyers |
Syed Saghir Tirmizey,
Syed Hasan Askari,
Dr. Moeen-ud-Din Ahmad Wani,
Nisar Ahmad
|
| Petitioners |
Messrs ARAFATEX INDUSTRIES (PVT.) LTD., FAISALABAD
|
| Respondents |
SECRETARY, REVENUE DIVISION, ISLAMABAD
|
| Citations |
2006 SLD 265,
2006 PTD 1705
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
10,
7,
8,
2(3)(i)(a),
2(3)(i)(b),
9(2)(b)
|