Law: Sales Tax Act, 1990

Section: 11,22

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

[Sales Tax Act, 1990]...section Ss. 11---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Assessment of tax---Limitation---Section 11 of the Sales Tax Act, 1990 provided that order of assessment of sales tax shall be made within 45 days of the issuance of how-cause notice or within an extended period not exceeding 90 days---how-cause notice was issued on 16-6-2002 and order-in-original was passed on 13-5-2003 after about 11 months of the issuance of the notice which was clearly hit by time limitation as provided in law---Maladministration was established and Federal Tax Ombudsman recommended the competent authority to cancel the order-in-original. THIS ORDER PASSED BY: JUSTICE (RETD.) SALEEM AKHTAR (FEDERAL TAX OMBUDSMAN):-------- Brief facts of the case are that the complainant derives income from import of surgical instruments and appliances and is registered under the Sales Tax Act, 1990. The unit was allegedly put to audit for a number of times. The complainant received a show-cause notice on 10-6-2002 stating that an amount of Rs.264,687 was recoverable from the unit along with additional tax and penalty on account of wrong claim of input tax amounting to Rs.196,325, suppressed sales of Rs.68,362 and late filing of return for August, 1998. The date for personal hearing and submission of explanation was fixed on 22-1-2002. The complainant states to have attended the office on the appointed date but the officer concerned was not available and the complainant filed his explanation in the office. The complainant received ex parte order-in-original, dated 13-5-2003 on 16-5-2003 demanding the amount stated in the show-cause notice as lawfully recovering from the complainant along with penalty. The grievance of the complainant are that no reasonable time was given for audit and no checklist of documents required for audit purposes was provided. Frequent visits of the auditors resulted in business loss. The input tax charged related to different period and the order-in- original was time-barred. The complainant prays for redressal of his grievances. 2. The respondent in his reply has stated that the complaint is unwarranted and…

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