Law: Sales Tax Act, 1990

Section: 10,10(2)

Law: Sales Tax Refund Rules, 2002

Section: 7(1)(2),5(3)(4)

Sales Tax Act (VII of 1990)---S. 10(2)---Sales Tax Refund Rules 2002, Rr. 7(1)(2) & 5(3)(4)---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S. 2(3)---Excess amount to be carried forward or refunded---Non-payment of refund within 30 days---Department did not pay the refund due to complainant despite the fact that S.10(2) of the Sales Tax Act, 1990 stipulated that input tax incurred in connection with zero rated supply be refunded not later than 30 days of the filing of returns subject to such conditions as the Central Board of Revenue prescribed---Department contended that refund claimed was deferred ' till completion of supplier's audit to avoid sanctioning inadmissible refunds---Validity---Delay was noticeable in respect of refund claimed- -Audit of the supplier initiated or intended to be initiated had not been completed and the complainant's refund claimed had been held up without any justification---Complainant's refund claimed had been subjected to inaction and delay by the Revenue which also tantamount to `maladministration'---Complainant exhibited a positive attitude that complainant's supplier would be prepared for audit of the relevant period and would supply all information and record required for the purpose to enable the Revenue to complete the audit within a period of one month and the complainant would be prepared for the claims to be decided by the Revenue on their merit in accordance with the provisions of law---Maladministration was established, however, considering Revenue's commitment it was directed to complete supplier's audit and other inquiries within one month and to decide complainant's refund claimed on merit---Federal Tax Ombudsman recommended that Central Board of Revenue direct the concerned authority to complete supplier's audit and other inquiries within a period of one month, as promised by the DR, and decide the complainant's refund claims on their merit in accordance with the provisions of law after enlisting complainants point of view and advise the dealing officials to adhere to the provisions of Sales Tax Act, 1990 and the Rules framed thereunder so as to avoid creating unnecessary…

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