Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3),9,10

Law: Customs Act, 1969

Section: 18,33

FINDINGS BY: MUSHTAQ AHMAD SUKHERA, FEDERAL TAX OMBUDSMAN:---.--- The complaint has been filed in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) against MCC Appraisement (West) Karachi (the Deptt) for delay in the refund of customs duty and additional custom duty which the Complainant paid due to inadvertence at the time of importing 7 consignments when he failed to claim exemption under 5th schedule of the Customs Act, 1969 (the Act) or SRO 1178(I)/2015 dated 30.11.2015. 2. The complaint was referred for comments to the Secretary, Revenue Division, in terms of Section 10(4) of the FTO Ordinance. In response, MCC Appraisement (West) Karachi filed comments informing that M/s. Pioneer Cables Limited imported consignments of Polythylene Viscole from Austria and got released following 7 GDs after the Payment of CD @11% and additional 1%:- Sr. No. GD No. 1 KAPW-HC-91137-10-11-2016 2 KAPW-HC-47815-07-09-2016 3 KAPW-HC-80278-26-10-2016 4 KAPW-HC-47820-07-09-2016 5 KAPW-HC-22563-04-08-2016 6 KAPW-HC-5022-13-07-2016 7 KAPW-HC-10446-19-07-2016 Further that at the time of filing of GDs, the importer neither claimed any benefit of "5th Schedule" of the Act nor that of SRO 1178(I)/2015 dated 30.11.2015. He filed for refund of overpaid Customs Duty and Additional Customs Duty for the above mentioned 7 consignments. In response a letter No. SI/MISC/27/2017-III, was sent by the Deptt to the importer asking him for a separate confirmation for his claiming input from the sales tax amount paid on imported consignment from Sales Tax Department. The Complainant replied that since he was claiming refund for customs duty only, therefore, he need not to produce documents regarding claim of input tax adjustment for sales tax. However, since under the provisions of the Customs Act, refund can only be sanctioned on proving that the incidence of customs duty has not been passed on to the end consumer. It was also informed by the Deptt that M/s. Pioneer Cables Limited has not submitted the sufficient reasons, confirming their stance that, the incidence of Customs Duty and other levies have not been passed on the buyer or consumer. The Complainant has…

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