ISLAMABAD, Jan 6: The Federal Tax Ombudsman (FTO), Justice Saleem Akhtar has asked the Collector of Customs (Appraisement) to release the withheld refund of Rs4.262 million to a taxpayer shortly.

According to the judgment issued on Monday, the FTO also asked the CBR to issue notice to the collector and appraising officer to explain why compensation and cost should not be awarded to the complainant along with due refunds.

The compliance report should be produced to this office within 21 days of this order, the FTO said.

The complainant, M/s Malta Auto Industries (Pvt) Limited, Karachi alleged inordinate delay on the part of tax officials in payment of refund of customs duty and taxes in spite of the order of the Appellate Tribunal and the rejection of the appeal of the Customs Department by the High Court.

The complainant stated that they imported a reconditioned plastic injection moulding machine valued at $47,000 and a clean report of findings (CRF) was issued by the PSI company. But the collector arbitrarily and unilaterally rejected the CRF and treated the machine as new one and valued it at $200,000.

The collector ordered its confiscation and allowed release on payment of fine equal to 20 per cent of the value. The complainant paid the fine, duty and taxes at the tune of Rs5.705 million against the actual amount of Rs1.443 million and filed an appeal to the appellate tribunal, which decided case in their favour.