| Case ID |
2e4364b6-a691-40f0-acce-7c71ed81a1ee |
| Body |
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| Case Number |
Complaint No.612 of 2006 |
| Decision Date |
Aug 15, 2006 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman found the decision of the Central Board of Revenue (C.B.R.) to extend the time limit for the Order-in-Original to be arbitrary and lacking in justification. The Ombudsman pointed out that the C.B.R. failed to establish the existence of 'exceptional circumstances' that warranted the extension, which is a requirement under the Sales Tax Act. Consequently, the Order-in-Original was deemed to be time-barred, as it was passed after the statutory limitation period had expired. The Ombudsman recommended that the competent authority annul the Order-in-Original and the related Order-in-Appeal, reinforcing the importance of adhering to procedural timelines in tax matters. |
| Summary |
In the case of Complaint No.612 of 2006, the Federal Tax Ombudsman addressed the grievance of Messrs A.K. International regarding the imposition of sales tax following a show-cause notice issued by the Central Board of Revenue (C.B.R.). The core issue revolved around the legality of the C.B.R.'s decision to extend the time limit for the Order-in-Original, which was challenged on the grounds of being time-barred under Section 36(3) of the Sales Tax Act, 1990. The Ombudsman emphasized that the extension was granted without any documented 'exceptional circumstances', rendering the C.B.R.'s actions arbitrary and in violation of legal standards. The final decision highlighted the necessity for regulatory bodies to adhere to established timelines to uphold taxpayer rights and ensure fair administrative processes. This case underscores the importance of transparency and accountability within tax administration, particularly in the context of extensions and limitations. Keywords: Federal Tax Ombudsman, Sales Tax Act, C.B.R., tax administration, legal standards, taxpayer rights. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Central Board of Revenue,
Collectorate of Sales Tax and Central Excise, Rawalpindi
|
| Judges |
JUSTICE (RETD.) MUNIR A. SHEIKH
|
| Lawyers |
Rana Muhammad Ishaq Khan,
Muteen Alam A.C. Sales Tax
|
| Petitioners |
Messrs A.K. INTERNATIONAL, RAWALPINDI
|
| Respondents |
SECRETARY, REVENUE DIVISION, ISLAMABAD
|
| Citations |
2007 SLD 257,
2007 PTD 1317,
(2008) 98 TAX 127
|
| Other Citations |
PLD 1963 SC 382,
Complaint No.805 of 2003,
Complaint No.335 of 2002,
Complaint No.904 of 2005,
PLD 1958 SC 104
|
| Laws Involved |
Sales Tax Act, 1990,
Federal Tax Ombudsman Ordinance, 2000,
Constitution of Pakistan, 1973
|
| Sections |
36(3),
73,
2(3),
254
|