Law: Sales Tax Act, 1990

Section: 2,2(34),11,33,34,48(1)(a)

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 9

Sales Tax Act (VII of 1990)---Ss. 2(34), 11, 33, 34 & 48(1)(a)---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.9---Deduction of additional tax from sanctioned refund claim without determining additional tax liability through process of adjudication---Validity---Additional tax could be imposed under Ss.33 & 35 of Sales Tax Act, 1990 only after issuance of show-cause notice and providing opportunity of hearing to assessee---Expression "tax" included additional tax---Ends of justice would have been met, if assessee was issued proper show-cause notice for recovery of additional tax as per prescribed procedure to enable him to prepare and enter his defence before adjudicating Authority---Impugned deduction was, held, to be premature and improper, especially when assessee had not consented to such deduction. DECISION/FINDINGS JUSTICE (RETD.) SALEEM AKHTAR (FEDERAL TAX OMBUDSMAN).---This is a complaint of maladministration on the part of Revenue Authorities for arbitrary adjustment/deduction of Rs.152,440 from out of the amount of sales tax refundable to it. 2. The facts of the complaint are that the complainant had claimed refund of input tax amounting to Rs. 11,934,095 for the period 12/02 out of which the respondents sanctioned a refund of Rs.6,150,590. However, they instead of making full payment of the sanctioned amount deducted/ adjusted by Refund Payment Order No.851/03 dated 14-14-2003 an amount of Rs.152,440 against sales tax liabilities outstanding against the complainant under different heads (balance amount of Rs.145,193 for short filing for the month of February 2003, Rs.7000 payable against cotton lint for January 2003 along with additional tax of Rs.247). It has been pleaded that the refund payment order dated 14-4-2003 deducting Rs.152,440 together with imposition of Rs.247 as additional tax, may be declared illegal and arbitrary. The respondents could not impose additional tax without first determining its payability through process of adjudication and also because complainant's refund for 12/02 has been lying with the department during the periods of January and February 2003 i.e. much before the passing 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