Law: Sales Tax Act, 1990

Section: 10,66,67

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3),9,10,11

Sales Tax Act (VII of 1990)---Ss. 10, 66 & 67---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss. 2(3), 9, 10 & 11---Refund claim---Complainant made zero-rated export and claimed input adjustment/refund---Refund claims were submitted by the complainant with required supporting documents, but despite that Sales Tax Authorities did not sanction the refunds---Non-deposit of Sales Tax by the suppliers was a systemic problem for which taxpayers unduly suffered---If the suppliers would fail to prove the deposit of Sales Tax in Government treasury they should be made to deposit that amount and thereafter the refund claim be paid to the complainant---Complainant's claim of refund had been ineptly handled by the Sales Tax Authorities---Besides, firstly advising them in writing to the application for condonation of delay, and then issuing a show-cause notice for rejecting the claim on account of time bar, was illegal---Issuing a show-cause notice for rejecting a claim for non-verification of deposit of Sales Tax without confronting the buyers and the suppliers both of whom were available for verification, spoke of high-handedness on the part of authorities---All those acts and omission or commission constituted maladministration---Recommendations were made to the effect that verification of payment and deposit of Sales Tax in government treasury be undertaken within 15 days; and the refund claim for tax period decided within 15 days thereafter; refund claim, which was stated to be under process be decided within a period of 7 days and compliance be reported within 30 days. FINDINGS/RECOMMENDATIONS DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN .---Messers Sana Traders made zero-rated export in tax period July and October, 2008 and claimed input adjustment/refund of Rs.276,672 for the month of July 2008 and Rs. 138,336 for the month of October, 2008. The refund claims were submitted with the required supporting documents but the Sales Tax authorities did not sanction the refunds. Hence, the Complaint of maladministration was filed in the FTO Secretariat on 30-1-2010. 2. The Complaint was referred to the Revenue Division for…

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