FINDINGS/RECOMMENDATIONS MUSHTAQ AHMAD SUKHERA, FEDERAL TAX OMBUDSMAN.----The complaint was filed against the Commissioner-IR, Corporate Zone, RTO, Multan in terms of section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (Federal Tax Ombudsman Ordinance) for decay in granting approval to the complainant for revision of the sales tax return for the tax period July, 2019 on account of change of NTN from 0801437-0 (Messrs Millat Tractor Ltd.) to NTN 1816941-4 (Messrs Millat Equipment Ltd.).
2. The complaint was referred for comments to the Secretary, Revenue Division, in terms of section 10(4) of the Federal Tax Ombudsman Ordinance read with section 9(1) of the Federal Ombudsman Institutional Reforms Act, 2013. In response thereto, the Chief Commissioner-IR, RTO, Multan forwarded comments of the Commissioner-IR Corporate Zone, Multan dated 13.11.2019, vide letter dated 14.11.2019. It was contended that the Complainant had filed request for revision of sales tax return for the tax period July 2019 but as per SOP issued by the FBR vide letter dated 18.07.2010, any error in Annex-C can be rectified through debit and credit notes and revision of return is not allowed.
3. In his rejoinder dated 22.11.2019, the AR averred that as per Section 26(3) of the Sales Tax Act, 1990 a registered person may, subject to approval of the CIR, having jurisdiction, file a revised return within 120 days of the filing of normal return. As per Finance Act, 2019 after filing of normal return, if tax payable had increased or refund claimed had decreased, approval is not required and return can be auto revised within 60 days from the filing of normal return, but FBR system is not allowing revision after filing of return on 17.08.2019 for the tax period July, 2019. It was further added that there was no involvement of cancellation of supply, change of supply or change in value, return of supply, only change of NTN is involved which can be rectified after approval, as the buyer cannot claim input tax without approval of revision of sales tax return.
4. Arguments heard and record perused.
5. As per record, application of the Complainant dated 16.09.2019, for revision of sales tax return is pending for the last three months and no action was taken by the Deptt despite follow up reminder dated 08.10.2019. Delay in disposal of the Complainant's application for revision of sales tax return in either way is thus, evident.
Findings:
6. Delay, neglect and inaction to dispose of Complainant's 'application for revision of sales tax return, is tantamount to maladministration, under section 2(3)(ii) of the Federal Tax Ombudsman Ordinance.
Recommendations:
7. FBR to:
(i) direct the Commissioner-IR, Corporate Zone, Multan to dispose of application of the Complainant dated 16-9-2019, after providing opportunity of hearing as per law; and
(ii) report compliance within 45 days.