Karachi, September 25, 2023 – The Federal Tax Ombudsman (FTO) has issued directives to establish a fact-finding committee in response to a complaint regarding the non-clearance of a Bentley Continental Car.
The complaint, filed against the Collectorate of Customs, Islamabad, also sought disciplinary action against the concerned officers.
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The complainant raised concerns over the non-clearance of a Goods Declaration (GD) dated July 19, 2022, and requested action against the officers responsible. According to the complainant, an imported vehicle, the Bentley Continental Flying Spur W12, Model 2020, was submitted along with all necessary documents under Section 79 of the Customs Act, 1969, for assessment and examination. The assessment was duly conducted under Section 80, resulting in the calculation of duty and taxes amounting to Rs 134 million.
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The importer paid Rs 73 million, and a pay order dated October 19, 2022, for the remaining differential amount of Rs 61.22 million was submitted to the collectorate to provisionally release the vehicle. However, although the customs department manually encashed the pay order on November 30, 2022, the GD filed was neither processed nor finalized. This was deemed a clear case of maladministration by the department.
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In its findings, the FTO determined that the customs department had encashed the pay order of Rs 61.22 million in violation of Section 81(3) of the Customs Act, 1969. This was done without any lawful authority and without justification, while simultaneously keeping the clearance of the GD in pending status. Such actions were considered tantamount to maladministration on the part of the department.
The FTO has recommended that the Federal Board of Revenue (FBR) direct the Chief Collector of Customs (North) to resolve the matter within 15 days. Furthermore, it is recommended that the FBR instruct the Chief Collector of Customs (North), Islamabad, to conduct a fact-finding inquiry into the non-professional conduct of the concerned officers. Based on the findings of this inquiry, corrective measures should be taken to address the situation and ensure a fair resolution for the taxpayer.
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This directive by the FTO underscores the importance of transparency and accountability in government departments, ensuring that taxpayers are treated fairly and their concerns are addressed promptly and efficiently.
