Utility Stores Corporation Files Harassment Complaint Against FBR

Utility Stores Corporation (USC) has filed a complaint about the harassment from the Federal Board of Revenue (FBR) in the Federal Tax Ombudsman. This complaint has been filed against Muhammad Fiaz Hussain DCIR, LTO, Islamabad against Mal-administration and Mis-representation during under process appeal filed by Utility Stores Corporation relevant to tax period w.e.f. 2012 to 2016 through submission of report No. 129 dated 28.08.2023. The complaint has been filed on the following grounds: It is surprising to note that Unilever, Dalda, and various others (list attached) suppliers/vendors had already furnished their Sales Tax Returns through the electronic system of FBR showing the purchases of USC but the said officer failed to apply his mind and not verified the input tax paid by the USC amounting to Rs. 5,049,948,999 and mis-represented the ATIR Bench through letter No.129 dated 28.08.2023 in violation of Section 24. Of the Sales Tax Act 1990 because the FBR had already accepted their Sales Tax Returns and not raised any objection on their filed Sales Tax Returns the following questions arise for investigation through letter No. 129 dated 28.08.2023 in violation of Section 24. Of the Sales Tax Act 1990 because the FBR had already accepted their Sales Tax Returns and not raised any objection to their filed Sales Tax Returns. Hence, the following questions arise for investigation and findings against the illegal act of the relevant officer : The relevant officer has misrepresented the case before the Honorable ATIR Bench and committed Mal-administration and Harassment to the taxpayer who is paying taxes in Billions on account of Income and Sales Tax as well as being a withholding agent throughout the country. This act of the officer has damaged the smooth functioning system of USC and created obstacles to providing the Household Goods /Grocery Items which include Flour, Sugar, Pulses, Tea, Rice, etc., to the poor and needy people. Now he has issued the show cause notice to the Manager Operations MCB Islamic Bank for recovery of Sales tax already paid relevant to the period under consideration and harassing the bank officers as well as the officer of USC. As per the record, the company has already filed the claims of refund of Rs. 4,250,202,302 which has not been disposed of before the recovery proceedings in violation of standing directions of FBR and violated the law.