ISLAMABAD, Dec 2: The Federal Tax Ombudsman (FTO), Justice (Retd) Saleem Akhtar, has directed the Central Board of Revenue (CBR) to avoid compulsory registration of taxpayers without completing investigation against them.

The decision was taken on the complaint of M/s Snow Land Hotel, Naran which complained against the tax officials for compulsory registration and subsequent levying of penalty on it.

The FTO observed that in fact no inquiry was made by the department to determine the turnover of the complainant.

In these circumstances, the justice said the registration of the unit under section 19 and subsequent order-in-original for imposition of penalty were arbitrary, baseless, contrary to law and suffers from abuse of authority.

The FTO directed to CBR to cancel the order of registration and order-in-original under section 45A of sales tax act and fresh proceedings be conducted after inquiries and proper service of show-cause and hearing notices on the complainant.

The compliance be reported to this office within 30 days of this order, said the FTO.