July 2, 2003	Wednesday	Jumadi-ul-Awwal 1, 1424

KARACHI, July 1: Federal Tax Ombudsman Justice (R) Saleem Akhtar has recommended the Central Board of Revenue (CBR) to direct the collector customs (sales tax) to allow complainant Excellent Enterprises, Karachi, represent its case. It should be provided proper hearing to furnish documentary evidence to justify its Sales Tax refund claim, which should be decided by issuing speaking order within 30 days.

In his decision announced after hearing Nafis Siddiqui, advocate for complainant and Customs officials, Justice (R) Saleem Akhtar said “it is a clear case of maladministration on the part of sales tax authorities.”

It is established that application of refund of sales tax filed on January 27, 2001 has not been decided by the Department.

Federal Tax Ombudsman said difference in date of invoices might have occurred due to an error. The supplier firm was not a ‘suspected’ unit when it was supposed to have supplied goods to the complainants.

The sales tax authorities perhaps find it convenient to keep the refund claim pending on the pretext of the firm being suspect instead of objectivity and fairly examining it on merits and taking a decision, he stated.

The complainant purchased on or about June 4, 2001 PV fabrics from Falcon International for total sum of Rs7,502,066, which included sales tax of Rs978,529. Falcon International issued two invoices No.316 and 317, but inadvertently put the dates as June 14, 2001. Complainant shipped goods to UAE vide bill of lading dated June 14, 2001, filed sales tax challan on July 6, 2001 for refund of Rs978529 on July 21, 2001.—PPI