MUHAMMAD KHALID vs The SECRETARY, REVENUE DIVISION, ISLAMABAD Ss — 2023 PTD 1594 FEDERAL-TAX-OMBUDSMAN-PAKISTA

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MUHAMMAD KHALID VS The SECRETARY, REVENUE DIVISION, ISLAMABAD Ss. 2(3), 9 & 10---Sales Tax Act (VII of 1990), Ss. 11, 45-B & 73---Sales Tax Refund Rules, 2002, Rr. 7 & 37---Maladministration---Scope---Refund of tax to commercial exporter on zero rated supplies---Authorities proceeded against the importer alleging him of using fake/flying invoices while taxpayer/ importer trying to satisfy the authorities---Complaint was filed by the importer against the Authorities for issuing show-cause notice to him (claimant / importer) in present matter which remained unresolved for about two decades with series/rounds of litigations, even in presence of order in his favour having been duly passed by the Commissioner (Appeal) and the Department neither filed second appeal nor sanctioned him the refund amount---Held, that matter-in-hand was a classic example of neglect, inattention, delay incompetence, inefficiency and ineptitude that constituted maladministration in terms of S. 2(3)(ii) of the Establishment of Office of Federal Tax Ombudsman Ordinance, 2000---Case of the complainant, prima facie, had been mishandled badly by the department due to, inter alia, rapid changes in the jurisdiction and transfer/posting of the officers from one place to another---Situation of the present matter had reached a stage where the Department would have no choice other than to give effect to the order of the Commissioner Appeals as the same (order) had attained finality and their (Department's) representation before the President against the previous order passed by this Forum(Federal Tax Ombudsman )had also been rejected ---Issuing Show-Cause Notice again to the claimant / importer relating to 19 years old matter and rejecting the claim on allegation of fake / flying invoices without having incriminating evidence / documents would be a blatant violation of the law and the orders having been passed---During 19 years, no serious and professional effort was made on record to show that the matter-in-hand was paid any prudent heed by the Department---Federal Tax Ombudsman passed certain recommendations directing FBR to give effect to the order passed by the Commissioner Appeals in favour of the complainant; and also to treat matter-in-hand as "case study" for academic, research and training purposes at the FBR---Complaint was disposed of accordingly. Head NotesCase Description

MUHAMMAD KHALID vs The SECRETARY, REVENUE DIVISION, ISLAMABAD Ss — 2023 PTD 1594 FEDERAL-TAX-OMBUDSMAN-PAKISTAN

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