ISLAMABAD (November 28 2006): The Central Board of Revenue (CBR) has directed the collectors of sales tax to strictly follow the President's judgment for adjudication of cases within the given timeframe under Sales Tax Act, 1990.
Sources told Business Recorder on Monday that the Board has issued instructions to all collectors of sales tax to follow the time period for issuing adjudication orders, keeping in view the President's ruling.
The CBR directive said that the Legal Wing had given a detailed presentation to the Board, highlighting the pendency of adjudication cases and Federal Tax Ombudsman (FTO) complaints. The President in a representation made by CBR had decided that adjudication time limit was mandatory.
Therefore, the collectors must ensure disposal of adjudication cases within the legal time frame, and to obtain necessary extension before expiration of the time limit laid down in the statute, wherever required. Under the Sales Tax Act, the order shall be made within 90 days of issuance of show-cause notice, or within extended period, as the collector may fix, provided that the extended period shall in no case exceed 90 days.
In some cases the adjudicating officers have decided cases after only one notice of hearing, which is against the principles of natural justice, the directive said. According to instructions to the adjudication authorities, the concerned officials should give at least two hearings and one final notice before issuing adjudication order.