ISLAMABAD, Dec 17: The Federal Tax Ombudsman (FTO) has directed the collector, customs, to decide the question of fraudulent transaction at the earliest, as alleged against a complainant following an issuance of notice to them.

The ombudsman observed that in the light of such decision the question of encashment of guarantees be also decided, said an official announcement issued on Tuesday.

The complainant, M/s Kohinoor Industries, alleged that the collectorate of customs exports, Karachi forced them to furnish bank guarantees against duty drawback claims of 39 shipments made in 1997 and was not releasing the same on whimsical grounds.

They further said that they were compelled to submit bank guarantees for Rs10.3 million and made to insert an illegal clause in the guarantees that they would produce the import document from the importing country attested by a notary public. However, they said out of 39 duty drawback claims, payment against 37 claims for Rs7.3 million was made. The remaining two claims of Rs10 million were still pending since 1998 for which bank guarantees were secured in 1998.

The FTO in his short order said this question should be considered and decided because mere enforcement of bank guarantee did not lead to the conclusion that action taken by the department withholding the claim of rebate and releasing it on condition of furnishing bank guarantee was in pursuance of a conclusive finding given about the fraud allegedly committed by the complainant.

The FTO directed submission of the compliance report to his office within 30 days of the issuance of the order.