FINDINGS/RECOMMENDATIONS DR. MUHAMMAD SHOAIB SUDDLE (FEDERAL TAX OMBUDSMAN).---This complaint has been filed alleging maladministration for the Department's failure to pass orders on the Recommendations of ADRC (Alternate Dispute Resolution Committee) in terms of section 47A(4) of the Sales Tax Act, 1990
2. The Sales Tax auditors after examining, the complainant's records for the period 2002-2004 observed discrepancies regarding suppression of supplies and evasion of sales tax. A Show-Cause Notice was issued which culminated in the passing of Order-in-Original No.724 of 2004 dated 21-9- 2004 for the recovery of an amount of Rs.351,530. The appeals filed before the Collector (Appeals) and the Appellate Tribunal were dismissed, and so the complainant filed a reference before the Lahore High Court. Another amount of Rs.15,149 adjudged vide Order-in-Original No.428 of 2002 dated 31-5-2002 was also outstanding against the complainant, making the total outstanding liability (Rs.351,530 + 15,149) = Rs.366,679.
3. The complainant requested the F.B.R. For constitution of ADRC in terms of section 47A of, he Sales Tax Act, 1990, to resolve the dispute regarding outstanding recovery. The F.B.R. Accordingly constituted a committee under section 47A(2) ibid. The ADRC ^ recommended the F.B.R. To accept recovery of Rs.124,702 against the adjudged liability to resolve the dispute. The Recommendations of ADRC were sent to the F.B.R. Vide letter C.No.18/2007/ADRC/ ST/4560 dated 29-4-2009 for approval in terms of section 47A(4) of the Sales Tax Act, 1990, but no action was taken by the F.B.R.
4. The complainant deposited an amount of Rs.124,702 recommended by the ADRC on 8-1-2011.
However, feeling aggrieved due to inaction of the F.B.R. On the report of ADRC, the complainant filed this complaint before the Hon'ble FTO alleging maladministration for delay.
5. The complaint was sent to the Revenue Division for comments in terms of section 10(4) of the FTO Ordinance, 2000. The Chief Commissioner, RTO, Multan, in his comments confirmed the facts stated in the complaint and submitted that decision of the F.B.R. On the Recommendations of the ADRC was awaited and further action would be taken on receipt of decision of the Board.
Findings:-- 5-A The F.B.R. Was required to pass an order in terms of section 47A(4) of the Sales Tax Act, 1990, witnin 45 days of receipt of report of ADRC. Delay in passing of appropriate order on the Recommendations of ADRC is established which is tantamount to maladministration in terms of section 2(3)(ii), of the FTO Ordinance, 2000.
Recommendations:--
6. F.B.R. To--
(i) take decision on the Recommendations of ADRC within 14 days; and report compliance within 7 days thereafter.