Law: Establishment of the Office of Federal Tax Ombudsman Ordinance, 2000

Section: 2(3),9,10

Law: Sales Tax Act, 1990

Section: 2(44),3-11,66

Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000)----Ss.2(3), 9 10--Sales Tax Act (VII of 1990), Ss.2(44), 3-11 66- Time of supply of vehicle--Change of definition--Refund of excess tax--Maladministration--Complaint against the Authorities for failure to refund excess tax--Rate of sales tax was reduced from 17% to 12.5% vide Finance Act, 2021 on vehicles having engine capacity up to 1000cc, while definition of ‘time of supply’ was also changed to the effect that the tax became chargeable at the time of delivery of goods-- Previously the complaints for refund of excess tax were filed by the Customers who had paid sales tax at the rate of 17% while booking vehicles before 1st July 2021, but delivery to them was made after said date when rate of sales tax had been reduced to 12.5% vide Finance Act, 2021--Said complaints were favourably disposed of holding that the amount paid in excess of 12.5% was refundable and the Authorities were directed to refund said differential amount--Later Federal Tax Ombudsman took Own Motion to provide relief to the customers because as many as 9000 cases, waiting for refund surfaced-- Objection of the Revenue Division was that transaction was between two private parties (manufacturer and customer), hence primary condition of maladministration against Revenue Division or Tax Department employee(s) was not applicable--Held, that transaction-in-question was not between the two parties as the Vehicle Manufacturing Company (‘the Manufacturer’) had collected tax leviable on vehicles from the customers on behalf of the FBR being their withholding agent and deposited the same through Monthly Sales Tax Return, thus the Department (Revenue Division) was very much a party in the present case; and the amount collected in excess from the customer by the manufacturer had to be refunded by the FUR (concerned office) to the manufacturer who would then refund the same to the customers/complainants, thus, objection of the Department that they were not party in the dispute not sustainable--Section 3-B of the Sales Tax Act, 1990, (‘the Act 1990’) was also not operative, in the present case, because when the price, inclusive of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492