' ABDUR RAUF CHAUDHRY, FEDERAL TAX OMBUDSMAN.---This complaint was filed in terms of section 10(1) of the F.T.O. Ordinance, 2000 (the Ordinance) against Model Customs Collectorate (MCC)
Appraisement-East, Karachi (the Deptt) on failure to respond to the Complainant's application for release/refund of duty and taxes secured under section 81(3) of the Customs Act, 1969 (the Act) by the Deptt.
2. The complaint was referred for comments to the Secretary, Revenue Division in terms of Section 10(4) of the Ordinance. In response, FBR forwarded comments denying the allegation of intentional delay or any maladministration.
3. Statedly, M/s. Majeed and Sons Steel (Pvt.) Ltd. Had imported two consignments declared to contain 'Prime Alloy Steel Billets and Steel Bars' and filed Good Declaration No,KEWB-HC-960 dated 10.10.2014 and No,KEWB-HC-4468 dated 04.06.2015. The goods were allowed provisional release under section 81 of the Act subject to test report from M/s. KRL, Islamabad to confirm whether the goods were 'alloy steel billets or 'non-alloy steel billets'. Till filing of the complaint, however, the test reports were awaited. The Complainant, through letters dated 15.05.2015, 21.04.2016 and 28.04.2016 requested the Deptt. To pursue with M/s. KRL, Islamabad in respect of test reports as were pending for more than one year and eight months. Due to failure of the Deptt. To take any action in the matter this complaint was filed with FTO on 25.05.2016.
4. During hearing, the parties reiterated the averments of their written pleadings. The AR confirmed that test report in case of one GD bearing No,HC-4468 dated 04.06.2015 has been received and the security furnished by the Complainant at the time of provisional assessment of duty has been released. The Deptt, in their written reply, also mentioned this fact. However, the AR reiterated that the test report in respect of the remaining GD is still awaited. The AR informed that after filing of complaint with FTO, the matter was pursued. Consequently, M/s. KRL, Islamabad vide letter dated 15.06.2016 informed that the subject sample has been misplaced. During hearing, the Deptt. Was directed to locate the sample again as three samples were drawn at the time of examination and get it tested. Subsequently, the sample was located and sent for test on 30.06.2016. However, despite reminders, the test report is still awaited. The DR, nevertheless, committed to pursue the matter and to take necessary action upon receipt of the report.
5. The complaint has been examined in the light of written and oral submissions of the parties and documents available on record. It is evident that the Deptt. Did not pursue the matter of pending laboratory reports in the normal course. It was only after filing of the complaint and FTO's intervention that the required action was initiated.
'FINDINGS:
6. Failure of the Deptt, to pursue the pending test reports caused inordinate delay in finalization of the provisional assessm ent which tantamounts to maladministration in terms of section 2(3)(ii) of the Ordinance.
'RECOMMENDATIONS:
7. FBR to direct MCC Appraisement (East) to i) pursue the pending test report with KRL, Islamabad; ii) decide the case within 10 days of the receipt of the report; iii) evolve a mechanism to monitor pending test reports in all other cases of provisional assessm ent to avoid inordinate delay in finalization of such cases; and iv) report compliance within 10 days thereafter.