ISLAMABAD, Jan 10: The tax authorities are collecting taxes and duties at Shergarh on Mardan-Malakand road in NWFP in violation of Customs Act, 1969.

The complainant, Bajaur Timber Supply Co, Dargai, Malakand Agency, in its complaint filed with Federal Tax Ombudsman contended that Shergarh was never notified as a customs station house as provided by section 9 of the Customs Act.

The tax authorities have been clearing the goods from Shergarh and charging duties and taxes treating it customs house station without notifying as required by section 9 of the Customs Act, it further said.

Taking cognizance of the action, Federal Tax Ombudsman (FTO) Justice Saleem Akhtar in his judgment released on Thursday recommended to the tax authorities that if the CBR deemed it proper and appropriate it might notify Shergarh as a customs station under section 9 of the Customs Act within a period of 45 days.

The Ombudsman observed that in case Shergarh was not declared as station house within the specified period and routes were not notified, then clearance of goods and levy of duties and taxes from Shergarh check post should not be allowed.

The compliance report should be produced within 60 days of this order, said the Ombudsman.

In the year 1963, Pakistan Customs established a check post in the settled area on Mardan-Malakand road, which after some years start functioning as a land customs station and the authorities posted their are collecting customs duties, sales tax, withholding income tax, central excise duty and other taxes for the time being in force till date.

The complainant pleaded the tax authorities are collecting duties and taxes without any lawful authority because the CBR has not declared Shergarh as land customs station, not declared the routes to or from the place, the limits of the land customs and the CBR has even not declared Shergarh to be a warehousing station.

It further said the customs authorities were not applying the mandatory provisions of the Customs Act relating to the arrival of goods.

According to the complainant, the entire exercise and acts of omission or commission were illegal and without jurisdiction and amounts to maladministration.

It was also pleaded that the amount collected as duties and taxes at the Shergarh land station/check post be refunded.