Very recently, the Federal Tax Ombudsman directed the FBR to ensure the release on time of an imported car sold through an auction of an importer. He acted upon a complaint regarding undue delay in its sale as made by the DI & I-Customs Quetta.
Through the auction conducted by the Directorate of Intelligence & Investigation at FBR Quetta Office, the complainant bagged a Daihatsu Mira. The bid put in for the car was Rs1,055,000. He submitted 25% of it within a week of conducting the auction. That’s Rs100,000. In fact, he paid 75% of the same, which sums up to Rs955,000 also as informed to him.
But, after making those payments, the auction certificate along with assistance in getting its vehicle registration was not presented to the complainant. He further argued that Directorate’s actions violated the set rules of an auction as there is a “How it is Where it is” rule whereby the commodity has to be delivered exactly as presented for sale.
The Directorate responded with the argument that the complainant failed to make a timely deposit of 25% and sought an extension for the final payment and was refused, hence sending a recommendation for forfeiture of his earnest money under Rule 69. They acknowledged that the complainant would be entitled to a refund of Rs955,000 and dismissed his complaint as malicious.
On scrutiny, it was noticed that the complainant had cleared the amount in full although with procedural delay. Under Rule 68 of the Customs Rules, 2001, the Collector of Customs is empowered to provide an extension of fifteen days for payment. Similarly, under Section 224 of the Customs Act, 1969, the FBR is authorized to grant time extensions where undue hardship occurs due to delays.
Conclusion of the FTO are as follows:
All the payments had been discharged by the successful tenderer.
The conditions provide for passing on the hardships and hence, it is a permitted delay.
Resulting from the above determinations the FTO directed the FBR to:
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1. The delay was passed on by Section 224 of the Customs Act, 1969
2. It was assured that the Directorate would arrange delivery of the motor vehicle to the complainant once procedure was satisfactory completed.
It is directed that the FBR shall comply with these instructions within 45 days, so that the case may be resolved without further delay.
