Law: Sales Tax Act, 1990

Section: 13,3(1A),3B,SixthSched.

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

Sales Tax Act (VII of 1990)---Ss. 13, 3(1-A), 3-B & Sixth Sched., Items 2, 66---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Exemption---Auction of standing trees---Recovery of sales tax from complainant/purchaser---Complainant was non-registered person.--­Department refused to refund such amount charged on exempted goods on the presumption that the incident will be passed on to the consumer--­Validity---Tax had been collected on behalf of the Central Board of Revenue in terms of S.3-B(3) of the Sales Tax Act, 1990---Bur,len of proof that the incidence of tax had been passed on to the consumer was on Central Board of Revenue---Nothing was available on record to show that the incidence of tax had been passed to the consumer---In absence of any record the petitioner could not be deprived of the amount, which had been recovered from him which was not chargeable from him--­Recovery of sales tax in the face of legal provision was illegal, without jurisdiction and contrary to law---Such illegal recovery made by the Government Departments was liable to be refunded---Federal Tax Ombudsman recommended that Rs.1,07,444 be refunded to the petitioner. DECISION/FINDINGS The petitioner purchased standing trees in auction from Government Elementary School, Lala-moosa. The principal in spite of protest by the petitioner recovered Rs.1,07,444 as sales tax, which was deposited in Bank on 13-4-2002. The petitioner had filed Complaint No.808 of 2002 earlier asking for refund but as he had not filed any application for refund the case was closed. The petitioner not being a registered person filed an application, dated 30-11-2002 demanding refund of the said amount. The Deputy Collector (Refund) refused to refund by his communication, dated 23-11-2002 in the following manner:-- "It is to inform you that you are not entitled to claim any refund on purchase as you are neither registered person under Sales Tax Act, 1990 nor you have any tax invoice/Bill of Entry under section 7(1) and specially subsection 2 of section 7 and under subsection 3 of section 8 in which clearly mentioned that no person other than registered person shall be made any…

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