OVAIS MOE VS C.B.R. (SALES TAX & CENTRAL EXCISE), KARACHI
2009 P T D 1179
[Federal Tax Ombudsman]
Before Justice (Retd.) Saleem Akhtar, Federal Tax Ombudsman
OVAIS MOE
Versus
C.B.R. (SALES TAX & CENTRAL EXCISE), KARACHI
Complaint No.1663-K of 2003, decided on 24/03/2004.
Sales Tax Act (VII of 1990)---
----S.20---Recording change of business address in certificate of registered person---Essentials---Registered person wag legally bound to notify his change of address, if and when same occurred---Duty of authority, after receiving notification of change of address, was to incorporate same iii departmental records and in Registration Certificate without loss of time---Only requirement was satisfactory evidence regarding taking place of genuine change of business address---Mandatory for each registered person/tax collecting agent to mention his correct address on tax invoice.
S.M. Bibtain, Advisor (Dealing Officer).
Iqbal Hussain for the Complainant.
Dr. Abdul Rehman Rind, D.C. for Respondent.
DECISION/FINDINGS
JUSTICE (RETD.) SALEEM AKHTAR (FEDERAL TAX OMBUDSMAN).---Maladministration is alleged in the instant complaint against Assistant Collector of Sales Tax (Registration) East for neglect, inattention and delay in making necessary change of address in Registration Certificate when the complainant notified the ACST under section 20 of the Sales Tax Act, 1990 about the change of his address stated in the registration application.
2. Briefly the admitted facts are that Messrs Pioneer Plastic applied for registration under Sales Tax Act on October, 25, 2001 and they were registered on November, 11, 2001 vide STR No.11-00-3923-071-64. They shifted their business premises from 308, New Kutiyana Centre, Mulji Street, Kharadar, Karachi to Plot No.124, Door Market, Jamia Masjid Road, Kemari, Karachi. The new business premises fell under the jurisdiction of Collectorate of Sales Tax & Central Excise (East), Karachi. Messrs Pioneer Plastic, therefore, applied for transfer of registration from West Collectorate to East Collectorate as per S. R.0.339(1)/2002, dated 15-6-2002. The application was submitted along with prescribed pro forma and necessary documents before both the Collectorates to transfer the case file from one Collectorate to another Collectorate. They also filed the Rent Agreement of new business premises, electric and telephone bills before Collectorate of East, Karachi and made a request to the Member (Sales Tax) Central Board of Revenue, Government of Pakistan, Islamabad as well as to solve the matter.
4. Responding to the notice under section 10(4) of Ordinance XXXV, 2000 the respondent submitted that the application of transfer of record was received on 7-10-2002 in Collectorate of Sales Tax and Central Excise (East), Karachi and while possessing the application for a fresh registration few necessary documents were not found enclosed for which a letter C. No.1669, dated 12-11-2002 was issued by the then Superintendent (Registration) Collectorate of Sales Tax and Central Excise (East), Karachi requiring to submit the said documents for processing of application for registration. However, the required documents were never provided, so the matter remained pending.
5. Meanwhile, Collectorate of Sales Tax and Central Excise (East) and (West) became defunct and after the merger of both the Collectorates and formation of Sales Tax House, Karachi "new business processes were formulated", according to respondent, and issues related to new registration as well as amendments were also "being turned to the new scenario" along with shifting of record from old buildings to new office.
6. The respondent further averred that instructions/directions were solicited to deal with the transfer of registration, between defunct East and West Collectorate and policy guidance was accorded on 2-1-2004 to deal with these cases. All the cases including Messrs Pioneer Plastic regarding transfer of registration from East to West or vice versa were being dealt as change of address cases after the policy decision and necessary amendment had already been incorporated in registration particulars and data of Messrs Pioneer Plastic in the original Registration No.11-00-3923-071-64 and registered person had already been informed vide letter No. 11/62/Reg/E/HQ/2002, dated 9-1-2004.
7. It transpires on further investigation and after personal hearing of the representatives of the two sides that neither there was nor there still is any prescribed procedure for notifying the change of address required under section 20 of the Sales Tax Act. S.R.O. 339(I) 2002 also does not relate to the requirement of section 20 ibid. The complainant faced procedural snags in filing monthly returns, issuing invoices mentioning address of a place where the business was no more located, and suffered delay merely because of neglect, inattention, incompetence and ineptitude of the concerned officers who were notified the change of address. It is true that the complainant used wrong pro forma and incorrectly referred to an irrelevant S.R.O. while notifying the change of address. However, the concerned officers were supposed to know the law and procedure that in order to record change of address of a registered person, the only requirement was a satisfactory evidence that a genuine change of business address had taken place. The complainant had already provided the rent agreement of the new business premises along with electricity and telephone bills. What has been done on 9th January, 2004 could have been done soon after 7th October, 2002 had the concerned officers been competent enough to know their job or had the aptitude to appreciate that it was their duty to ensure that correct procedure was adopted to record the correct business address in the certificate of the Registered Person without loss of time because it was mandatory that each Registered Person/Tax Collecting Agent mentioned his correct address on the invoice. The only obligation placed by section 20 of Sales Tax Act on Registered Person was to notify his change of address if and when it occurred. It was for the concerned officer, after receiving any such notification of change of address, to incorporate the change not only in the Departmental records but the Registration Certificate as well.
8. The alleged maladministration is proved. It is recommended:---
(a) That Member Sales Tax, C.B.R. issues general instructions to all Collectorates in the light of observations made supra.
(b) That the compliance is reported within 45 days.
S.A.K./232/F.T.O.Order accordingly.