Federal Tax Ombudsman (FTO), former Justice Munir A Sheikh has directed Central Board of Revenue (CBR) to process the case of refund of balance sale proceeds of an importer.
This decision was taken on the complaint of Sheikh Muhammad Iqbal of M/S Impex Industries, Lahore, who had requested the respondent for remission of sale proceeds of consignment comprising 117 Secondary hot rolled steel coils auctioned by the customs department, said a press release issued on Tuesday.
The FTO has recommended to the CBR to direct the competent authority to process, subject to final determination of title or ownership of disputed goods by a court of competent jurisdiction and subject to the complainant proving before the respondents the ownership and title of goods in his favour, the complainant's case for payment of refund of balance sale proceeds, which may be determined.
The FTO has ruled the duty and taxes should be calculated on the declared import value rather than the bid price of goods in question. The department may, however, levy the rates of duty and taxes applicable at the time the goods were moved out of the warehouse for auction.
He has also ruled that 5 percent surcharge for donation to Motmar-e-Alame-Islami should not be levied and deducted from the sale proceeds because the respondents have failed to disclose the legal basis of the levy.
He also observed that 40 percent of the sale proceeds should not be deducted from the balance of sale proceeds as the share of the person holding the goods in the absence of legal sanction/authority to levy the charge, instead, normal warehouse rent should be charged from the concerned person for the entire period the goods remained warehoused and compliance in this regard be reported within 30 days of the receipt of this order, the statement added.-PR