Law: Sales Tax Act, (III of 1951)

Section: 7,7(2),36(3),45

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 9(2),2(3)

Sales Tax Act (III of 1951)---Ss. 7(2), 36(3) & 45---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss. 9(2) & 2(3)---Input Tax--Limitation-Jurisdiction-Maladministration-Autonomous Corporation had complained against entitlement to claim input tax and demand of penalties and additional tax for violation of the provisions of S.7(2) of the Sales Tax Act, 1951---Corporation had also pleaded that the Sales Tax was paid and excess amount paid was adjusted through a bona fide mistake causing no loss to Revenue and alleged that scrap/assets machinery was auctioned, advance sales tax was paid on estimated weight but on actual weighment it was found that weight was short and excess paid tax was adjusted through another challan for the same month instead of applying for refund---Delayed communication of audit observation, and further delay in demand notice, show-cause notice and adjudication order and inordinate delay in service of adjudication order was also complained against---Department replied and asserted violation of S.7(2) of the Sales Tax Act, 1951 and delay was due to heavy pendency and adjudication order was just and proper---Order complained against was appealable and hence there was no maladministration---Validity---Adjustment of the excess sales tax was inadvertently taken by the taxpayer in the second return of the same month---Sales Tax was not chargeable on the sale of scrap---Sales Tax inadvertently paid was higher than the amount calculated on the basis of actual weight---Inordinate delay of about four years had occurred in issue of the adjudication order---Whole exercise of issue of demand, the show cause notices and adjudication order were contrary to law---Total proceedings were perverse, unjust and oppressive and miscarriage of administrative justice---No evasion of sales tax was committed---Charge of maladministration was established---Federal Tax Ombudsman, therefore, recommended that Central Board of Revenue may set aside the order complained against in circumstances. FINDINGS/DECISION JUSTICE (RETD.) SALEEM AKHTAR (FEDERAL TAX OMBUDSMAN).---The Pakistan Mineral Development Corporation (PMDC), an autonomous…

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