The Federal Board of Revenue (FBR) will request the Chief Justices of all High Courts to set up special benches to clear the backlog of pending cases relating to customs, sales tax, income tax and central excise. Sources told Business Recorder here on Friday that the decision is part of the FBR strategy to recovery stuck up arrears of Rs 130 billion under the short-term enforcement measures.
According to the plan, the formal request for special benches to be constituted would be made by March 10, 2011. In case the tax related cases would be decided by March 31, 2011, the FBR will complete the recovery process by end of June 30, 2011. The exercise is expected to recover stuck up arrears to the tune of Rs 130 billion.
During the tenure of an ex-FBR Chairman, Abdullah Yousuf, the Supreme Court of Pakistan had constituted a special bench to clear the backlog of pending cases relating to customs, sales tax, income tax and central excise. Yousuf had personally requested the chief justice for early decision on tax-related cases. A special bench was setup, which finalised all tax-related cases in time.
Sources said that the decision on cases of similar nature at the level of Supreme Court substantially reduced litigation at the level of High Court and tribunals. The verdict of superior court would be used as precedence by the legal experts dealing such cases at lower judicial fora. According to sources, the FBR wants to reduce litigation at any cost and above-mentioned steps are reflective of its endeavors.
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