Karachi, November 27, 2023 – The Federal Board of Revenue (FBR) has unveiled the updated Sales Tax Act, 1990 for the upcoming tax year 2024, providing taxpayers with the right to appeal against decisions or orders made by officers of the Inland Revenue.
Under the amended Section 45B of the Sales Tax Act, taxpayers, excluding the Sales Tax Department, can file appeals within thirty days of receiving decisions or orders issued under sections 10, 11, 25, 36, or 66 by an Inland Revenue officer. Notably, an appeal submitted after the thirty-day period may be considered by the Commissioner Inland Revenue (Appeals) if sufficient cause for the delay is demonstrated.
The appeal process, as outlined in Section 45B(1A), mandates that appeals should be in the prescribed form, verified appropriately, precisely state the grounds for appeal, and be accompanied by the specified fee. The prescribed fee varies depending on whether the appellant is a company or not, with companies required to pay five thousand rupees for assessments and one thousand or two thousand and five hundred rupees in other cases.
Section 45B(1C) grants the Commissioner (Appeals) the authority to stay the recovery of tax for up to thirty days if he deems that its enforcement would cause undue hardship to the taxpayer. This decision follows a hearing wherein both the appellant and the relevant commissioner or Inland Revenue officer are given an opportunity to present their arguments.
Upon receiving an appeal, the Commissioner Inland Revenue (Appeals) is obligated, as per Section 45B(2), to pass an order within one hundred and twenty days of the appeal’s filing date. An extension, not exceeding sixty days, may be granted for reasons recorded in writing. This extension does not apply to periods of adjournment due to stay orders, Alternative Dispute Resolution proceedings, or adjournments by the petitioner, not exceeding thirty days.
In deciding an appeal, Section 45B(3) empowers the Commissioner (Appeals) to conduct further inquiries as necessary, with the stipulation that the case should not be remanded for de novo consideration. Additionally, Section 45B(5) outlines the Commissioner (Appeals)’s discretion to reject any documentary material or evidence not presented before the Inland Revenue officer unless the appellant demonstrates sufficient cause for its omission.
This amendment to the Sales Tax Act, 1990 aims to streamline the appeals process, ensuring transparency and fairness in the resolution of tax-related disputes between taxpayers and the Inland Revenue.
