NADIA TEXTILES INTERNATIONAL LIMITED, LAHORE VS SECRETARY, REVENUE DIVISION, ISLAMABAD, 2012 PTD-FEDERAL-TAX-OMBUDSMAN-PAKISTAN 1586 (2012)

Customs Act (IV of 1969)---

----S.35---Federal Tax Ombudsman Ordinance (XXXV of 2000),S.2(3)---Duty-drawback claims---Alleged delay, negligence and inaction on part of the department to process said claims of the complainants---Complainants had submitted their duty-drawback claims for processing by "Micro Clear" software which was closed on 28-2-2012 and replaced by a new system "Standalone", however the data from "Micro Clear" software was yet to be retrieved and transferred to the new system, which became operational on 1-3-2012, causing delay in processing of duty-drawback claims fed in the "Micro Clear" software---Federal Tax Ombudsman, in circumstances, found that installation of new software without taking steps for retrieving and transferring of data from the old system reflected inefficiency and ineptitude in the administration and discharge of official responsibility, which was tantamount to maladministration---Federal Tax Ombudsman recommended the Federal Board of Revenue to direct the Chief Collector Customs to expedite development of software to retrieve and transfer data of duty-drawback claims fed into "Micro Clear" software, and to process claims pending clearance in the old "Micro Clear" software after transfer of data to new system on priority basis.

Justice (R) M. Nadir Khan, Advisor Dealing Officer.

M. Afzal Awan, Naeemuddin Pervaiz Rais Khan and Muhammad Rashid Authorized Representatives.

Dr. Aamir Nawaz Hamid, Assistant Collector Departmental Representative.

FINDINGS/RECOMMENDATIONS

DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN.---Five complaints of identical nature on same subject are joined for disposal.

2.The complainants have approached the Hon'ble FTO against delay, negligence and inaction on the part of Department to processtheir duty-drawback claims, withheld without any legal excuse or justification.

3.The Department responded to the notices of complaints issued to the Secretary, Revenue Division, Islamabad, and filed comments stating that the subject rebate claims were being processed by MCC, PaCCS in the Micro Clearsoftware of Messrs Agility. The Micro Clear software was closed w.e.f 28-2-2012 and replaced by alternate software "Standalone" of WeBOC. According to the Department, pending rebate claims being processed in Micro Clear software had been categorized in the following three categories:--

(1)The unprocessed claims constitute the major part of the pendency. The software for this type of claims has been developed by Messrs PRAL.

(2)The claims pending at Trader's end. The software for processing and payment of this type of claims is under development with Messrs PRAL.

(3)The claims where cheques have been allotted in the system before 29-2-2012 but the cheques could not be printed or the cheques were not received by the exporters in the past, the software for processing and payment of this type of claims is also under development with Messrs PRAL.

4.The Department contended that the claims of the complainants fell under Category (ii). The Collectorate had taken up the matter with the WeBOC project team and Messrs PRAL for retrieval of data and development of alternative software for processing and payment of pending duty-drawback claims. Necessary action would be taken after retrieval of data and development of software by Messrs PRAL.

5.The complainants were supplied copy of comments received from the Department but they did not opt to file a rejoinder.

6.Parties were afforded opportunity of hearing.

7.During hearing, the ARs did not dispute the comments of the Department about developing software for processing of claims pending in Micro Clear software. However, they requested that time frame be fixed, and pending claims given priority.

8.The DR submitted that the Department was making all out efforts to develop software for processing of pending claims in old Micro Clear software. However, due to rush of work and developing of new software, he could not commit how long would it take to develop. He assured that he would personally take up the matter with WeBOCproject team and PRAL to develop software for retrieval and transfer of data of under process duty-drawback claims pending in Micro Clear software.

9.After due consideration of submissions of the parties and averment of their pleadings it was obvious that the complainants had submitted their duty-drawback claims for processing by Micro Clear software which was closed on 28-2-2012 and replaced by new system "Standalone". However, the data from Micro Clear software was yet to be retrieved and transferred to new system, which became operational w.e.f. 1st March 2012, causing delay in processing of duty-drawback claims fed in Micro Clear software.

Findings:

10.Installation of new software without taking steps for retrieving and transferring of data from old system reflects inefficiencyand ineptitude in the administration and discharge of official responsibility, which is tantamount to maladministration.

Recommendation:--

11.F.B.R. to direct the Chief Collector Customs to--

(i)expedite developing of software to retrieve and transfer date of duty-drawback claims fed in to Micro Clear software;

(ii)process claims pending clearance in old Micro Clear software after transfer of data to new system on priority basis; and

(iii)report compliance within 30 days.

M.W.A./118/FTOOrder accordingly.