Messrs SUFI SAJJAD, Proprietor, Islamabad and another VS SECRETARY, REVENUE DIVISION, ISLAMABAD, 2006 PTD-FEDERAL-TAX-OMBUDSMAN-PAKISTAN 1749 (2004)

Sales Tax Act (VII of 1990)---

----Ss. 30 & 45B---S.R.O. 380(I)/2002, dated 15-6-2002---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Appointment of officer---Admittedly, complaints were filed after the filing of appeals with Collector (Appeals) on the grounds that though the appeals had been filed before the Collector (Appeals) but there was no such legally appointed officer because S.30 of the Sales Tax Act, 1990 listing the officers of sales tax to be appointed by the Central Board of Revenue did not mention the Collector, Sales Tax (Appeals) and one of the officers to be so appointed---Validity---According to S.45B of the Sales Tax Act, 1990 any person aggrieved by a decision or order passed under S.11, 36 or 46 by an officer of sales tax below the rank of Additional Collector may prefer an appeal to the Collector of Sales Tax (Appeals)---Collector (Appeals) was a post clearly mentioned in the Sales Tax Act, 1990---No assistance was rendered by either of the parties to search and produce notification authorizing the Collector of Customs to hear the appeal---Responsibility lay on both sides but mainly on the department---Federal Tax Ombudsman Office, after intensive research, was able to locate Notification No. S.R.O. 380(1)/2002, dated 15-6-2002 by which Central Board of Revenue, in exercise of power under S.30 of the Sales Tax Act, 1990, had appointed the Collector, Collectorate of Customs, Sales Tax and Central Excise, to hear the appeals and this clinches the entire issue and cases were closed by the Federal Tax Ombudsman.

Mir Ahmed Ali for the Complainants.

Tariq Ahad Nawaz, Addl. Collector (Adjudication) and Muhammad Nasir Khan, Addl. Collector for Respondent.

FINDINGS/DECISION

JUSTICE (RETD.) SALEEM AKHTAR, FEDERAL TAX OMBUDSMAN.---These are two complaints against the combined order-in-original, dated 16-7-2003 passed by the Deputy Collector (Adjudication), Rawalpindi creating sales tax demands of Rs.407,313 and Rs.425,306 in the cases of the two complainants. Appeals were admittedly filed by the complainants on 19-8-2003 with the Collector (Appeals), Rawalpindi against the order-in-original while the complaints were filed on 29-8-2003. The provisions of section 9(2)(a) of the Establishment of the Office of Federal Tax Ombudsman Ordinance, 2000 are thus found to be applicable in the cases but the learned Advocate for the complainants contended that since these were the case of alleged maladministration the matter fell within the jurisdiction of the Federal Tax Ombudsman. It was also contended that though the appeals had been filed before the Collector (Appeals), Rawalpindi there was in fact no such legally appointed officer because section 30 of the Sales Tax Act, 1990 listing the officers of sales tax to be appointed by the Central Board of Revenue did not mention the Collector, Sales Tax (Appeals) as one of the officers to be so appointed.

2. The contentions of the learned Advocate for the complainants have been considered and as regards the contention relating to alleged maladministration it was admitted by him that the issues raised in the appeals are the same as in the complaints. There is thus no merit in the contention that section 9(2)(a) of the Establishment of the Office of Federal Tax Ombudsman Ordinance, 2000 was not attracted in the case.

3. It has been contended on behalf of the complainant that section 30 makes no mention of the Collector (Appeals) and hence no forum for appeal exists. Therefore in effect remedy of appeal is non-existent. According to section 45B of the Sales Tax Act any person aggrieved by a decision or order passed under sections, 11, 36 or 46 by an officer of sales tax below the rank of Additional Collector may prefer an appeal to the Collector of Sales Tax (Appeals). The Collector (Appeals) is thus a post clearly mentioned in the Sales Tax Act. No assistance was rendered by either of the parties to search and produce notification authorizing the Collector of Customs to hear the appeal. The responsibility lay on both sides but mainly on the department. Our office carried out intensive research and was able to locate notification No.S.R.O. 380(I)/2002, dated 15th June, 2002 by which the Central Board of Revenue in exercise of power under section 30 of the Sales Tax Act, 1990 has appointed the Collector, Collectorate of Customs, Sales Tax and Central Excise, Rawalpindi to hear the appeals. This clinches the entire issue. The cases are closed.

C . M . A . /269/FTO?????????????????????????????????????????????????????????????????????????? Order accordingly.