Law: Sales Tax Act, 1990

Section: 21

Sales Tax Act (VII of 1990)---S.21---Blacklisting of unit by Sales Tax Department---Complaint was filed by proprietor of firm that his unit had been blacklisted by Sales Tax Department without intimating and without issuing any show-cause notice to him---Since no illegalities had been committed by complainant and no charges were framed by Sales Tax Department against complainant, there was no justification to blacklist his unit---Besides unjust blacklisting, Department had raised several objections to prolong its illegality instead of providing relief to complainant who was put to hardship and his business had suffered because of alleged illegal blacklisting of his unit---Officer empowered under S.21(4) of Sales Tax Act, 1990, was supposed to observe due process of issuing a notice and giving opportunity of hearing before blacklisting a registered person or suspending his registration---Action taken by Sales Tax authorities, was arbitrary, perverse unjust, oppressive and based on irrelevant grounds--Present case was a one of maladministration as defined under sub-section (3) of S.21 of Sales Tax Act, 1990, it was recommended that C.B.R. should direct Collector of Sales Tax to cancel blacklisting of complainant within fifteen days and compliance report be sent within thirty days. FINDINGS/DECISION The complaint has been filed against the blacklisting of the unit by the Sales Tax Department. The Complainants have stated that their office is located at 202, Saima Arcade, Bahadurabad, Karachi, and the sales tax auditors have been regularly conducting audit at this office and have also visited their warehouse for physical inspection of stock. They have been tiling sales tax returns regularly and have never received any show-cause notice of order disallowing sales tax input or for (their) de-registration. 2. In December, 2003, they received information from the customs that the Sales Tax Department had sent objection memos. showing that Messrs Weaving and Weaving (the Complainants) did not exist and the sales tax amount was deducted from their refund claims although they had deposited the same in the Government treasury. They immediately approached the sales tax…

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