Law: Federal Tax Ombudsman Ordinance, 2000

Section: 10(1)

  JUDGMENT/ORDER/FINDINGS/RECOMMENDATIONS FINDINGS/RECOMMENDATION   Brief Facts 1.      Background of the Complaint The complainant (M/s Khushal Pvt Limited, NTN 2731431, Karachi), represented by its director (a senior citizen), filed the complaint under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 against maladministration by the Revenue Division/FBR. The grievance is the alleged illegal/unlawful suspension of the company’s Sales Tax registration effective from 13.02.2023, despite no business activity and pending revision of June 2022 return. 2.      Initial Facts and Allegations M/s Khushal Pvt Limited is registered for Sales Tax with the business activity of manufacturing plastic products. The complainant states that the company was not carrying out any business operations. The director applied for revision of the Sales Tax return for June 2022 but received no response from the department, leading to pending returns. On 13.02.2023, the Sales Tax registration was suspended (status reflected on IRIS portal). Despite multiple visits and explanations, the suspension was not lifted. Recently, a Chinese delegation visited the office to initiate new business, but the suspended status prevented any business activity/transaction. The complainant alleged harassment, maladministration, and violation of due process, as no proper show-cause notice or opportunity of hearing was provided before suspension. 3.      Relief Sought The complainant prayed for: Immediate restoration of Sales Tax registration. Removal of suspension status from the IRIS portal. Directions to stop any coercive action and allow normal business operations. Any other appropriate relief against maladministration. 4.      Proceedings before Federal Tax Ombudsman The complaint was registered and referred to the Secretary Revenue Division/FBR for comments u/s 10(4) of the FTO Ordinance. The complainant appeared in person along with Authorized Representative (Mst. Riffat Naeem, Advocate). Departmental Representatives (Mr. Babu Ali Baloch, OIR and Mr. Muhammad…