Case Details

Citation(s)
2011 SLG 216 2011 SLD 216 2011 PTD 1189
Federal Tax Ombudsman
Complaint No. 174/KHI/ST(48)/751 of 2010, decision dated: 8-07-2010
DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN
Mumtaz Ahmed, Advisor, Dealing Officer. Aqeel Ahmed and Muhammad Hussain, Authorized Representative AND Jawad Hussain Memon, A.C., Departmental Representative

Messrs HAMDAM PAPER PRODUCTS (PVT.) LTD., KARACHI

VS

SECRETARY, REVENUE DIVISION, ISLAMABAD

Law: Sales Tax Rules, 2001

Section: 12

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3),9,10

Sales Tax Rules, 2001---R. 12---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss. 2(3), 9 & 10---Blocking a company's name---Complainant, a registered Sales Taxpayer, was aggrieved by unlawful harsh action of blocking his company's name without jurisdiction---No show-cause notice was issued to the complainant, no order of Federal Board of Revenue was issued and no procedure undertaken or adopted in the light of R.12 of Sales Tax Rules, 2001, Chief Commissioner Office 'though had taken steps to correct the maladministration involved, but such patently wrong actions should not have been done in the first place---Blocking and de-blocking at times was being done without adopting proper procedure---Recommendations were made to Federal Board of Revenue to write a letter of apology to the complainant to direct the Chief Commissioner to conduct a fact finding inquiry in the matter and proper counter measures to avoid such systemic issues in future; to ensure de-blocking of the entity within 7 days; to complete implementation of recommendations within 15 days failing which contempt proceedings would be initiated against the concerned officials in whose jurisdiction the issues fell and to report compliance within 30 days. FINDINGS/RECOMMENDATIONS DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN.'---The Complainant, a registered Sales taxpayer, is aggrieved by the 'unlawful harsh action' of blocking his company's name in May, 2010 without jurisdiction. This was due on the AC, RTO's letter of January, 2010. It is further complained that jurisdiction of the case stood transferred in February, 2010 to the LTU but due to bias and arbitrariness by the officer(s) at the RTO, the case papers were not transferred toe the LTU. In addition, in the communication dated 1-6-2010 issued by the Assistant Commissioner, Audit Unit-II of Audit Division-III of RTO Karachi to Messrs Jammali Enterprises, Karachi, the Complainant was shown as "blacklisted", which further damaged the business prospects of the company. There was no show-cause notice, no order of the F.B.R., and no procedure undertaken or adopted in the light of Rule 12 of Sales Tax Rule 2001.…
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