The SECRETARY, REVENUE DIVISION, ISLAMABAD vs Ss — 2024 PTD 86 FEDERAL-TAX-OMBUDSMAN-PAKISTAN

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The SECRETARY, REVENUE DIVISION, ISLAMABAD VS Ss. 2(3)(i)(a), 2(3)(i)(b), 2(3)(i)(c), 2(3)(ii), 9 & 10---Sales Tax Act (VII of 1990), S. 13 & Sixth Sched. Serial No.46 (as omitted through Finance (Supplementary) Act, 2022)---FBR's U.O No. 4/I-STB/2022, dated 4th February, 2022-Maladministration---Scope---Imports by diplomats, diplomatic missions and other privileged persons were rendered taxable through Finance (Supplementary) Act, 2022, by omitting relevant Serial No.46 to the 6th Schedule of the Sales Tax, 1990, but FBR unilaterally rendered the said omission inapplicable vide U.O No. 4/I-STB/2022, dated 4th February, 2022 ('UO')---Reservations of the Ministry of Foreign Affairs ('MOFA') were that the said omission could trigger an adverse reaction from other foreign states and international organizations---Validity---Plain reading of UO in question revealed that FBR, on its own, had assumed the review jurisdiction of an Act of Parliament and unilaterally undid the omission and once again granted exemption from the tax levied by the Legislature---While doing so, the FBR had trespassed its legal domain, and issuance of UO, containing an oblique clue to FBR's volta-face, tantamounted to maladministration in terms of Ss. 2(3)(i)(a), 2(3)(i)(b),2(3)(i)(c) & 2(3)(ii)Federal Tax Ombudsman Ordinance, 2000, as the omission-in-question having hurriedly been enacted through Finance(Supplementary) Act, 2022 was perverse, arbitrary or unreasonable, unjust, discriminatory and was based on irrelevant grounds---Subsequent unilateral withdrawal through UO was contrary to law ;and even delay and ineptitude was shown by the FBR because summary for Federal Cabinet was moved after about 24 days of raising of alarm by the MOFA and that too at the intervention of Federal Tax Ombudsman ('Ombudsman')---Ombudsman directed the FBR to identify the officer responsible for said faux pas , resulting in an embarrassing position for MOFA and that proper legal cover be arranged in place of FBR's U.O No. 4/I-STB / 2022, dated 4th February, 2022---Own Motion was disposed of accordingly.

The SECRETARY, REVENUE DIVISION, ISLAMABAD vs Ss — 2024 PTD 86 FEDERAL-TAX-OMBUDSMAN-PAKISTAN

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