FTO directs CBR to clear rebate claims expeditiously

The Federal Tax Ombudsman Justice Munir A Sheikh has directed Central Board of Revenue to investigate all long-delayed rebate/refund claims in Customs House Rebate Section and direct the competent authority to dispose of all such claims expeditiously on merit and in accordance with law.
The FTO gave these directions while disposing of a complaint where CBR Rebate Section took 23 years to make payment of export rebate of Rs 36,614. A copy of FTO order was made available to Business Recorder here on Saturday.
In its complaint, H M Iqbal & Co, Multan, said that after exporting leather shoes in 1982 it submitted an application with Customs House Karachi for payment of export rebate of Rs 31,957 on 16.12.1982. Subsequently, claim for the actual amount of Rs 36,614 was preferred on 05.07.1987 with requisite documents.
However, the respondent CBR officials took the plea that since crucial documents such as BCA and non-resident account certificate were missing, the rebate case could not be processed.
After examining the arguments and record of the case, the FTO observed that the list of documents appended to the application indicated that while the complainant had attached original bank credit advice, it had not appended with the application non-resident account certificate. After 11 years, on 22.08.1998, the Collectorate asked the complainant to furnish non-resident certificate and the BCA to enable the Collectorate to dispose of its outstanding claims.
The FTO observed that Custom House in a letter of 20.08.01 assured the applicant that his claim would be processed and sanctioned, which showed that the claimant had provided all necessary documents to the department.
He observed that there was an inordinate delay on the part of CBR officials who failed to settle a case which was filed in 1987 despite submission of missing documents in 1998. The CBR officials' contention that the case was old and that the complainant had failed to supply the documents was not tenable, he added.
Describing the case as a "stark maladministration", the FTO observed that the claim was subjected to inattention and indifference and its payment was inordinately delayed.
In view of obvious maladministration involved in the case, the FTO recommended that the CBR: (a) Inquire into the matter to pinpoint the reasons of long delay in setting complainant's rebate claim for appropriate remedial and administrative action (b) Identify through inspection of Custom House Rebate Section all such long delayed rebate/refund claims and direct the competent authority to dispose of delayed claims on merit in accordance with the provisions of law but expeditiously.(c) Compliance be reported within 30 days of the receipt of this order.