ST amnesty scheme different from customs, income tax: an important provision missing

The sales tax amnesty scheme announced by the Federal Board of Revenue (FBR) is different from the customs and income tax amnesty schemes as the sales tax amnesty is missing an important provision of immediate refund in case of payment made under amnesty later proves to be non payable due to any judgement or decision.
Experts told Business Recorder here on Sunday that an important clause is not available under the sales tax amnesty scheme, which was available in the amnesty schemes notified in the past. Thus, the sales tax amnesty scheme is quite different from other two amnesties. An important saving clause pertaining to guarantee of immediate refund, in case of payment made under amnesty found non payable, is totally missing from the amnesty scheme announce recently by the Board vide its notification 648(I)/2011. If a taxpayer makes payment of sales tax under the sales tax amnesty scheme to avoid penalties and later the disputed amount has to be refunded to the taxpayers, such provision is totally missing in the sales tax amnesty scheme.
While discussing the scope of amnesty announced recently by the Board in all three major segments of duties and taxes with the renowned tax expert/advocate Arshad Shehzad, he explained that unlike amnesty provided under customs and income tax the amnesty pertaining to sales tax is found quite different in this aspect. The other two amnesties vide notification 646(I)/2011 and 647(I)/2011 contain specific special clause 3, which provides that in cases where refund becomes due in consequence of a decision or judgement at a later stage, the customs duty/taxes deposited under these notifications shall be refunded.
Interestingly, the same clause is not provided in amnesty scheme pertaining to sales tax & federal excise. Arshad Shehzad further highlighting the scope of the amnesty said that such saving clauses are necessarily required for successfully achieving the object of the scheme. In his view, such clear-cut assurance gives motivation and a level of comfort to any potential person who intends to avail the scheme. The clause basically translates the law of fundamental right and natural justice. The clause enables the taxpayers in a situation where they, in order to avoid the consequences of harsh penalties though not agreed with the legality of due amount, intend to deposit the principal amount in good faith to seek the refund if later a legal decision comes in their favour. Surprisingly, this important feature this time has not becomes part of the amnesty scheme.
He further said that huge amount of approximately Rs 20 billion to Rs 25 billion has been alleged illegally adjusted/ refunded and criminal cases were registered by the directorate of customs intelligence just in a couple of months back, which can also be recovered smoothly if the scope of amnesty widens up to that extent by offering provision for compounding of the offences. Such schemes usually in the past were introduced with the announcement of Finance Bill or even before it. However, this time it was introduced just at the end of the fiscal year and the availability of only five working days to gain the benefit seems quite insufficient in the context of sluggish economic condition. In the absence of such clauses the scheme seems to be too little and too late, Arshad Shehzad added.
It is important to mention that the FBR has given only a few days to the registered persons for availing the scheme. The tax lawyers have demanded at least one month extension in amnesties announced through three notifications--SRO 647 (I)/2011, SRO 648 (I)/2011 and SRO 646 (I)/2011--for providing tax incentives to the taxpayers for depositing the outstanding dues.