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Claims with blacklisted units invoices: 20 panels set up to examine sales tax refund cases

ISLAMABAD (September 12 2004): To facilitate over 2000 exporters in payment of sales tax refund, the Central Board of Revenue (CBR) has constituted 20 committees to examine the cases of exporters who claimed refund on the invoices of blacklisted units.

The committees would submit their recommendations in the light of parameters announced by the Board here on Saturday.

The decision would speed up payment of sales tax refund to the commercial exporters including exporters of hosiery and knitwear, leather garments, cloths, towel manufacturers, chemical and dyes merchants, textile processing sector, small and medium exporters, readymade garments made-ups exporters, tanneries sector, readymade garments exporters, pottery and shuttle exporters and cases of All Pakistan Textile Mills Association (Aptma).

An official told Business Recorder that a major grievance of exporters' has been removed who contested that refund should not be blocked due to the reason that the blacklisted suppliers are not traceable. The factual status is that the exporters have paid sales tax on the goods purchased from the suppliers.

These exporters had exported goods against supplies received from suppliers who were later blacklisted.

The committees have been given the mandate to examine exporter's cases under the 'terms of reference' to ascertain whether there was any collusion between the blacklisted unit and registered exporter.

The committees shall examine the question of fact and law as regard those refund claims, referred to them, wherein input tax invoices submitted by the registered persons (Refund Claimants), have been deferred by the STARR owing to blacklisting / suspension of the registration of their relevant suppliers on whose invoices their refund claimed are based and non-deposit of that input tax by these suppliers. The terms of reference of each committee, while proceeding in accordance with the Sales Tax Act, 1990 and the Rules made thereunder, shall be to ascertain as to whether:-

i) there was any collusion or connivance between the blacklisted/suspended supplier and the registered exporter;

ii) the exporter has a valid receipt or proof for physical transfer/receipt and export of goods;

iii) the supplier was blacklisted or his registration was suspended subsequent to the purchase/supply of goods;

iv) the exporter made payment of the price of the goods along with sales tax in accordance with section 73 of the Act;

v) the foreign exchange remittance has been duly received against the export of goods; and

vi) the veracity of the input tax claimed by the supplier.

Each committee shall examine the cases of refund of the relevant exporters only (wherever specified) referred to them. The working of the committees shall be regulated by the procedures prescribed under section 47A of the Sales Tax Act, 1990 and Chapter X of the Sales Tax Rules, 2004 (SRO 485(I)/2004 dated June 12, 2004) and submit their recommendations to the Board, within 30 days of such reference.

According to a notification issued on Saturday, the Central Board of Revenue has appointed the committees of following persons, in the Collectorates given below, to examine the cases of refunds, claimed on invoices of blacklisted persons:

(A) COLLECTORATE OF SALES TAX & CENTRAL EXCISE/LARGE TAXPAYERS UNIT, Karachi

The Committee for cases relating to Hosiery and knitwear Exporters, is headed by Muhammad Saeed Shafiq, Nominee of Karachi Chamber of Commerce and Industry, Karachi and includes Saleem Parekh, Nominee of Pakistan Hosiery Manufacturers Association, Karachi and Additional Collector (Audit-II), Collectorate of Sales Tax & Central Excise, Karachi, as members.

The Committee for cases relating to Chemicals & Dyes Merchants, headed by Iftikhar Ahmed Sheikh, Nominee of KCCI, Karachi and includes Abdul Rahim Chughtai, Nominee of Pakistan Chemicals & Dyes Merchants Association, Karachi and Additional Collector (Legal), Collectorate of Sales Tax & Central Excise, Karachi as members.

The Committee for cases relating to Cloth Exporters to be chaired by Abdul Majeed Memon, Nominee of KCCI, Karachi and includes Ehsan Ellahi Sheikh, Nominee of Pakistan Textile Exporters Association (Formerly Apcea), Karachi and Additional Collector (Enforcement) Collectorate of Sales Tax & Central Excise, Karachi, as members.

The Committee for cases relating to Leather Garments Export Sector, headed by Mansoor Ilyas, a Nominee of KCCI, Karachi and includes Fawad Ejaz, nominee of Pakistan Leather Garments Manufacturer and Exporter Association, Karachi and Additional Collector (HQ), Collectorate of Sales Tax & Central Excise, Karachi, as members.

The Committee for cases relating to Commercial Exporters headed by Sheikh Shakil Ahmed Dhingra, a nominee of the FPCCI, Karachi and includes Khalid Amin, Nominee of Pakistan Silk and Rayon Mills Association, Karachi and Additional Collector (Audit-I), Collectorate of Sales Tax & Central Excise, Karachi as its members.

The Committee for cases relating to Towel Manufacturers, chaired by M. Zubair Motiwala, Nominee of KCCI, Karachi and includes Muhammad Muzzamil, Nominee of Towel Manufacturers Association, Karachi and Additional Collector (Audit-I), Collectorate of Sales Tax & Central Excise, Karachi as its members.

The Committee for cases relating to textile Processing Sector, headed by Tariq Sayeed, nominee of the FPCCI, Karachi and includes G.R. Arshad, nominee of All Pakistan Textile Mills Processing Association, Karachi and Additional Collector (Audit-II), Collectorate of Sales Tax & Central Excise, Karachi, as its members.

The Committee for cases relating to Readymade Garments Madeups Exporters, headed by Sheikh Maqbool Ahmed, Nominee of the FPCCI, Karachi and includes Tahir Aziz, nominee of Pakistan Knitwear & Sweater Exporters Association, Karachi and Additional Collector (Legal), Collectorate of Sales Tax & Central Excise, Karachi as its members.

The Committee for cases relating to Medium & Small Exporters and Others, headed by Haroon Farooki, nominee of KCCI, Karachi and includes Muhammad Amjad Raza, nominee of Pakistan Small Industries Association, Karachi and Additional Collector (Hqs), Collectorate of Sales Tax & Central Excise, Karachi, as its members.

Collectorate of Customs, Sales Tax and Central Excise, Hyderabad:

The Committee for exporters of Hyderabad, headed by Haji Muhammad Yaqoob, nominee of HCCI, Hyderabad and includes Rashid Sethar, nominee of Sukkur Chamber of Commerce & Industry, Sukkur and Additional Collector Collectorate of Customs, Sales Tax & Central Excise, Hyderabad, as its members.

Collectorate of Sales Tax and Central Excise, Lahore:

The Committee for cases relating to Aptma, headed by Sheikh Muhammad Asif, Nominee of LCCI, Lahore and includes Anisul Haq, Nominee of All Pakistan Textile Mills Association, Lahore and Additional Collector (HQ), Collectorate of Sales Tax & Central Excise, Lahore as its members.

The Committee for cases relating to Readymade Garments Exporters, headed by Irfan Qaiser, a Nominee of LCCI, Lahore and includes Mian Riaz Ahmad, nominee of Pakistan Readymade Garments Manufacturers & Exporters Association, (Prgmea) Lahore and Additional Collector (Audit), Collectorate of Sales Tax & Central Excise, Lahore as its members.

The Committee for cases relating to Tanneries Sector headed by Ashraf Bhatti, Nominee of LCCI, Lahore, include Amjad Zafar, nominee of Pakistan Tanneries Association (PTA), Lahore and Additional Collector (Hqs), Collectorate of Sales Tax & Central Excise, Lahore as members.

The Committee for cases relating to Hosiery and Knitwear Exporters, headed by Irfan Iqbal, a Nominee of LCCI, Lahore and includes Sehzad Azam, nominee of Pakistan Hosiery Manufacturers Associations, (PHMA), Lahore and Additional Collector (Audit), Collectorate of Sales Tax & Central Excise, Lahore, as members.

Collectorate of Sales Tax and Central Excise, Faisalabad:

The Committee for cases relating to Textile Processing Sector, headed by Ch. Muhammad Boota, a Nominee of FCCI, Faisalabad, and includes Muhammad Amjad Sheikh, nominee of All Pakistan Textile Processing Mills Association, Faisalabad, and Additional Collector, Collectorate of Sales Tax & Central Excise, Faisalabad, as members.

The Committee for cases relating to Cloth Exporters, headed by Balighur Rehman Kermani, a Nominee of SCCI, Sargodha and includes Ahmad Kamal, nominee of Pakistan Textile Exporters Association, (Formerly APCEA), Faisalabad and Additional Collector, Collectorate of Sales Tax & Central Excise, Faisalabad, as members.

Collectorate of Sales Tax and Central Excise, Gujranwala :

The Committee for cases relating to Shuttle Exporters, headed by Iqbal Ahmed butt, a nominee of GCCI, Gujranwala and includes Tariq Rasheed, nominee of M/s. Pakistan Shuttle Manufacturers Association, Gujranwala and Additional Collector, Collectorate of Sales Tax & Central Excise, Gujranwala, as members.

The Committee for cases relating to Pottery Exporters & others, headed by Ch. Zulfiqar A. Hayat, a nominee of SCCI, Sialkot, and includes Muhammad Saeed, nominee of Pakistan Pottery Manufacturers Association, Gujranwala, and Additional Collector, Collectorate of Sales Tax & Central Excise, Gujranwala, as members.

Collectorate of Sales Tax and Central Excise, Peshawar :

The Committee for cases at Peshawar, headed by Adeel Rauf, a nominee of SCCI, Peshawar and includes Babar Mehmood Shirazi, nominee of Industrial Association, Hattar, Haripur, Mushtaq Akbar, Chartered Accountant, Peshawar and Additional Collector, Collectorate of Sales Tax & Central Excise, Peshawar, as members.

The Committee for cases at Multan, headed by Khawaja Younis, a nominee of MCCI, Multan and includes Syed Muhammad Asim, nominee of All Pakistan Bedsheet & Upholstery Manufacturers Association, Multan, Sheikh Farooq, Nominee of Pakistan Cotton Ginners Association, Multan and Additional Collector, (Sales Tax), Collectorate of Customs, Sales Tax & Central Excise, Multan, as members.

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