| Case ID |
421e51ae-b06a-49f2-881c-c2063257fc97 |
| Body |
View case body. Login to View |
| Case Number |
Complaints Nos. 134 to 141 of 2009 |
| Decision Date |
Sep 11, 2009 |
| Hearing Date |
|
| Decision |
The complaint filed by Muhammad Yousaf, sole proprietor of Messrs Faizan Ramzan, against the Sales Tax Authorities for excessive delay in payment of refund claims was heard. The central issue was the determination of the per kg quantity of sodium hypochlorite required for bleaching cotton waste. The Sales Tax Authorities presented conflicting evidence regarding the chemical consumption rates, leading to a contentious debate over the correct standard. The Federal Tax Ombudsman recommended that the Federal Board of Revenue conduct a thorough review of the consumption ratios of bleaching chemicals across various cotton waste recycling operations nationwide. The Ombudsman also advised implementing a foolproof monitoring system for compliance with sales and purchases as per legal requirements. The decision emphasized the need for accurate record-keeping by the complainant and rejected the blanket application of a higher consumption standard for all cotton waste types, citing the diverse nature of the waste processed. |
| Summary |
In this case, Muhammad Yousaf, the sole proprietor of Messrs Faizan Ramzan, raised complaints against the Sales Tax Authorities for delays in processing their refund claims. The complaints revolved around the determination of the appropriate quantity of sodium hypochlorite required for the bleaching of cotton waste, specifically denim cut pieces. The Federal Tax Ombudsman, Dr. Muhammad Shoaib Suddle, presided over the case and found that there were discrepancies in the consumption rates provided by both parties. The Ombudsman highlighted the need for a comprehensive review of industry standards and practices, advocating for a national standard to be established by the Federal Board of Revenue. The Ombudsman also underscored the importance of proper documentation and compliance with legal requirements by the complainant. This case underscores the complexities involved in sales tax disputes, particularly in industries with variable product inputs. The recommendations made aim to foster transparency and accountability within the sales tax collection process, ensuring that businesses are treated fairly while adhering to the law. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Sales Tax Authorities,
Messrs Faizan Ramzan
|
| Judges |
Dr. Muhammad Shoaib Suddle
|
| Lawyers |
Rao Tasavvur Ali
|
| Petitioners |
Muhammad Yousaf
|
| Respondents |
Secretary, Revenue Division, Islamabad,
Yasin Tahir,
Rao Tasawur Ali,
Saleem Akhtar
|
| Citations |
2009 SLD 110,
2009 PTD 2069
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
3,
9,
10,
11
|