FINDINGS/RECOMMENDATIONS MUSHTAQ AHMAD SUKHERA, FEDERAL TAX OMBUDSMAN.----The complaint was filed against the Commissioner-IR, RTO Multan, in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (the Ordinance) for delay in granting approval to the Complainant for filing sales tax return for the tax period of April 2019.
2. The complaint was referred for comments to the Secretary Revenue Division, in terms of Section 10(4) of the FTO Ordinance read with Section 9(1) of the Federal Ombudsmen Institutional Reforms Act, 2013. In response thereto, the Chief Commissioner-IR RTO, Multan forwarded comments submitted by the Commissioner-IR Multan Zone vide letter 12.12.2019. At the outset, preliminary objection regarding bar of jurisdiction of this forum in terms of section 9(2)(b) of the FTO Ordinance, was raised, on the ground that the legal remedy was available to the Complainant. Reliance was placed on the judgment of Hon'ble Lahore High Court, Lahore in W.P.
No.5999/2017 (Shehzadi Polypropylene Industries v. Federation of Pakistan and others). On merits, it was contended that the application dated 13.11.2019, for revision of return was scrutinized and no valid reason was given for non-submission of sales tax return. It was also observed that the Complainant had been declaring no business activity during the tax period 04-2019 and requested to grant approval to file "Null" return. As the Complainant had failed to give any valid reason for delay, his application was forwarded for verification and upon receipt of verification report, the issue will be disposed of as per law.
4. During hearing, the AR reiterated the contents of the application dated 13.11.2019 and 20.11.2019 submitted to the Deptt. The DR contended that the IRO, Multan had finalized report under Rule 14(3) of the Sales Tax Rules, 2006 and undertook to dispose of the application of Complainant within 30 days, as per law. It needs to be clarified that the reference citation has no relevance to the issue in hand as the reference case pertain to income tax and the instant proposition pertains to sales tax.
5. In view of undertaking of the DR, the Commissioner-IR, Multan Zone, RTO Multan is directed to dispose of application for revision of sales tax return of the Complainant, as per law.
6. Report compliance within 45 days.