| Case ID |
38362da7-082a-4bac-a9d4-13896167cfdb |
| Body |
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| Case Number |
Complaint No. 1570 of 2003 |
| Decision Date |
Jan 23, 2004 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman found that the adjustment of the complainant's sanctioned refund against an undetermined tax liability was illegal. The adjustment was made without following the due process of law, specifically without issuing a proper show-cause notice or a formal adjudication order. The Ombudsman emphasized that mere audit observations do not replace the requirement for a show-cause notice and adjudication. The acts of the Revenue Division were deemed arbitrary, unjust, and contrary to law, constituting maladministration. The Ombudsman recommended that the Central Board of Revenue vacate the orders adjusting the complainant's refunds and ensure proper procedures are followed in future cases. |
| Summary |
In this case, Messrs A.N. TRADERS (PVT.) LTD filed a complaint against the Secretary of the Revenue Division regarding the adjustment of sanctioned refunds without proper legal process. The complainant had been sanctioned a refund of Rs. 1,468,754 but faced an arbitrary adjustment of this amount based on audit findings without a formal show-cause notice or adjudication, violating the Sales Tax Act, 1990 and Federal Tax Ombudsman Ordinance, 2000. The Ombudsman ruled that the Revenue Division's actions constituted maladministration, highlighting the necessity of due process in tax recovery matters. This case underscores the importance of adhering to legal procedures to protect taxpayers' rights and ensure fair treatment under the law. Key terms include 'maladministration', 'Sales Tax Act', and 'refund adjustment', which are relevant for understanding the legal framework governing tax disputes. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Central Board of Revenue,
Department of Sales Tax
|
| Judges |
JUSTICE (RETD.) SALEEM AKHTAR
|
| Lawyers |
Muhammad Ashraf Hashmi,
Jawwad Zafar Malik
|
| Petitioners |
Messrs A.N. TRADERS (PVT.) LTD
|
| Respondents |
SECRETARY, REVENUE DIVISION
|
| Citations |
2007 SLD 255 = 2007 PTD 1274
|
| Other Citations |
Messrs United Export Company v. Pakistan and 3 others 2000 PTD 1798,
Complaint No.1344 of 2002, dated 21-3-2003
|
| Laws Involved |
Sales Tax Act, 1990,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
48,
36,
2(3)
|