KARACHI, Jan 25: Member Sales Tax, Central Board of Revenue (CBR), Falak Sher has set up a committee to resolve the cases of double refund claims.

The committee, comprising one representative of the Karachi Chamber of Commerce and Industry (KCCI), one member of concerned association and official of the central excise and sales tax department, would submit their report in a month to the member, sales tax.

The decision to form a committee was taken during a meeting between Falak Sher and president KCCI, A.Q. Khalil on Friday. The committee will review each and every cases where notices were issued in respect of double refund.

Member Sales Tax said that in cases where refund claims were made at customs stage and collectorate stage, but the items of which refunds were claimed were different, the Committee would withdraw the notices.

The parameters, he said, fixed for the committee are: (I) no refund of sales tax through standard/individual notification be allowed from the October 1, 1996 on yarns and grey fabrics of all kinds. Hence the cases framed from July-September 1996 be withdrawn. Section 36(2) of Sales Tax Act applicable is present to determine the period of limitation to claim the enormously made refund from exporter.

Exporters who have claimed sales tax refund from customs collectorate (on the basis of imported raw materials i.e. mainly imported dyes and chemicals) cases in which refund of sales tax has been made, involving locally manufactured yarn and dyes and chemicals, wherein the show cause notices issued by the collectorate would be withdrawn.

Exporters who have claimed sales tax refund from customs collectorate (on the basis of imported raw material i.e. mainly imported dyes and chemicals) cases involving refund of sales tax obtained from collectorate of sales tax, in which refund was taken on the imported dyes and chemicals, concerned exporters would be asked to refund the sales tax amount obtained in imported material.

Under Section 36(2), whereby reasons of any inadvertence, error or misconstruction, any tax or charge has not been levied or, made or has been short levied or has been erroneously refunded, the person liable to pay the amount of tax or charge or amount of refund erroneously made shall be served with a notice within three years of the relevant date, requiring him to show cause for payment of the amount specified in the notice.