FTO orders refund

Published March 16, 2007

ISLAMABAD, March 15: The Federal Tax Ombudsman, Justice (Retd) Munir A. Sheikh, has asked the collector of customs (appraisement) Karachi to refund the withheld amount of Rs2 million to the complainant.

The decision came on the complaint of one Shehzad Nisar from Karachi who complained that the collector of appraisement had forfeited the amount of the complainant in violation of the tax laws.

The complainant had offered a highest bid for the two lots of hair colour against the total bid of Rs1.15 million. The department did not issue balance sheet to the complainant, and instead it forfeited his earnest money.

The FTO ruled that the forfeiture of earnest money by the collectorate was arbitrary, unjust, oppressive and unlawful and hence an act of maladministration. He asked the CBR to direct the collector customs to refund the earnest money within 15 days and the compliance report be sent to this office within

30 days.