Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)(ii),10(1)&10(4)

Law: Sales Tax Act, 1990

Section: 67

F.T.O. Ordinance, 2000 Sections: 2(3)(ii), 10(1) & 10(4) - Sales Tax Act, 1990, Section: 67 Maladministration - Non-issuance of sales tax refund - Non-appearance of balance invoices received through Expeditious Refund System - Proceedings to suspend sales tax registration of complainant under way - Plea of department for not issuing amount in system during currency of suspension of registration and also due to reason for not loading data properly in E.R.S - Validity - (1) Whether it is evident that dealing staff of R.T.O was ignorant about option of Return Discrepancy in STARR system and further that RTO staff failed to ask from F.B.R HQ or even relevant PRAL staff, attached with R.T.O, reason of non- appearance of invoices received through ERS in system - Held yes. (2) Whether this shows lack of expertise in system at operational level and it also reflects non-cooperative attitude of field staff to help out genuine taxpayers - Held yes. (3) Whether inordinate delay in settling refund claim in instant complaint tantamount to maladministration in terms of section 2(3)(iii) of Ordinance - Held Yes. FINDINGS/RECOMMENDATIONS The complaint is filed against the Chief Commissioner-IR (COR), RTO, Karachi, in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (the Ordinance) for non-issuance of balance sales tax refund of Rs. 1,869,915 for the tax period June 2014. 2. The complaint was referred to the Secretary, Revenue Division for comments in terms of Section 10(4) of the Ordinance. In response, the FBR vide letter C. No.1(725)S(TO-II)/2015 dated 18.06.2015 submitted comments of the Chief Commissioner-IR (CCIR), RTO, Karachi dated 17.06.2015. It was contended that the Complainant was non-compliant registered person. The return was filed by the Complainant claiming refund of Rs. 2,396,023/- but purchase invoices involving sales tax of only Rs. 651,154/- were fed in the system out of which refund of Rs. 526,108/- was sanctioned and Rs. 125,046 was deferred due to objections raised by the system. The Complainant requested for issuance of balance refund of Rs. 1,593,869/-, The deptt was unable to issue refund amount as the Complainant had failed to…

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