Case Details

Citation(s)
2012 SLG 722 2012 SLD 722 2012 PTD 836
Federal Tax Ombudsman
Complaint Nos.651-655/LHR/CUST(35-39)1370-1374 of 2011, decision dated: 7-02-2012
DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN
M. Nadir Khan, Advisor for Dealing Officer.

MESSRS E.M. INDUSTRIES (PVT.) LTD., SIALKOT AND 4 OTHERS

VS

SECRETARY, REVENUE DIVISION, ISLAMABAD

Law: Customs Act, 1969

Section: 37

Customs Act (IV of 1969)--S.37--- Drawback on goods used in the manufacturing of goods which were exported---Withholding of duty draw-back claims---Complainant prayed that department be advised to pay the amount due immediately and not to delay payments in future---Department informed that the claims which had come to the top of the queue were sanctioned and rest of the claims being in queue would be sanctioned on their turn---Validity---Despite Federal Tax Ombudsman's repeated directions for processing and payment of rebate/duty draw-back claims without delay, a large number, of claims kept piling up without any just cause, which tantamount to maladministration---Federal Tax Ombudsman directed the Department to file monthly progress report about pendency/disposal of rebate/duty draw-back claims and recommended the Federal Board of Revenue to direct Collector Customs to ensure timely processing and payment of all pending rebate/duty draw-back claims; to submit a consolidated monthly report about pendency and disposal of rebate/duty drawback claims on the format already circulated to all the Collectorates across Pakistan and to take adequate steps to liquidate pendency of duty draw-back claims on a sustainable basis. FINDINGS/RECOMMENDATIONS DR. MUHAMMAD SHOAIB SUDDLE (FEDERAL TAX OMBUDSMAN).---Five identical complaints represented by same AR and DR are joined for disposal. 2. The complainants have sought indulgence of the Hon'ble FTO against withholding of their duty draw-back claims. They have filed lists of their duty draw-back claims and prayed that the Department be advised to pay the amount due immediately and not to delay payments in future. 3. In response to the notices of complaints issued to the Secretary, Revenue Division, Islamabad, the Department has filed para wise comments pleading that duty draw-back claims are being paid regularly after thorough scrutiny, verification of documents and observing other legal formalities on first come first served basis. According to the report submitted by the Deptt about status of duty draw-back claims of the complainants, the claims which had come to the top of the queue were sanctioned and rest of the claims…
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