LAHORE: The Federal Tax Ombudsman (FTO) has recommended the Federal Board of Revenue (FBR) to direct its commissioner to review the impugned Order-in-Original (ONO) under Section 45A of the Act and pass fresh orders (if needed) on the basis of the FBR’s instruction applied to other cases. The FTO has also asked the FBR to submit its compliance report within 45 days.
The FTO has issued the decision on the complaint of Ijaz Hussan Butt, Secretary, Punjab Government Employees Cooperative Housing Society Limited (complainant) versus Secretary Revenue Division (respondent).
The complaint has been filed by the provincial Government Employees Cooperative Housing Society for rising demand of Federal Excise Duty (FDE) by passing ONO after issuing a show-cause notice under the provision of FED which stood replaced since June, 2011.
The case was referred to the secretary Revenue Division for comments in terms of section 10 (4) of the Ordinance. In response, the RTO Gujranwala filed comments through its letter.
During the hearing, the FBR secretary provided a copy of the FBR’s letter and requested that the same may be treated as comments of the board.
The FBR did not agree with the opinion of the Law and Justice Division and matter was again referred to the Law and Justice Division on the grounds that FED levied under section 3 of the Federal Excise Act, 2005.
Contentions of both parties and relevant case record have been perused and FTO found that the passing of impugned ONO for payment of FED on the basis of development expenditure instead of allotment/possession of plots/ residential and commercial units tantamount to maladministration.
