Industrialists concerned over Sindh BoR audit notices

Industrialists have expressed concerns over the issuance of audit and inspection notices to industries by the Board of Revenue (Sindh) under section 73 of the Stamp Act 1899, and demanded their withdrawal. They said that the section 73 of the Stamp Act 1899 73 is not applicable on industries in private sector.
They further said that the section which is quoted for inspection is applicable on public officers having in their custody any registered books records, etc. Private sector enterprises do not fall within the ambit of this section.
Industries are getting notices under section 73 of the Stamp Act 1899 which states that every public officer having in his custody any registers, books, records, papers, documents, or proceedings, the inspections whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorised in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as he may deem necessary, without fee or charge.
Around 30-40 industrialists in Site industrial area have received notices in this regard. The notices demand the industries to make the records chargeable with stamp duty ready, and attached a list of 28 documents required for carrying out inspection.
These documents include staff salary sheets and labour wages roll, payment vouchers, affidavits, agreements, partnership deed, transfer of allotment orders before lease, allotment orders in respect of plot and flats issued by the developers and builders, bank guarantees, bills of entries, exchange and lading, indemnity/security, issuance of terms finance certificates, debentures, issuance of share certificates, charter party, contract agreements relating to execution of work and procurement and cartage of store materials and engineering consultancy services and purchase orders, documents of title in respect of properties owned by the organisation, banking and other documents creating charges on properties, letter of credit, documents of various loans to the employees, partition deeds, policies of insurances and marine policies, power of attorney, promissory notes, release deeds and share transfer deeds.
Chairman of Site Association of Industry (SAI) Abdul Wahab Lakhani in a statement said that some 30-40 industries have received notices this week. He recalled that the BoR had also issued such notices in the last few years but could not succeed in its efforts, after agitation from the industries.
He said that the Section 73, which is referred to for inspection, is applicable on public officers having in their custody any registered books records etc. Private sector enterprises or companies are neither public officers nor their establishments are public offices, he added. Therefore, the Section 73 is not applicable on industries in private sector.
He said the notices appeared to have been issued on misconstruction and misinterpretation of relevant provision of law. Abdul Wahab said he failed to understand that provision of the law for public officer or public offices was being applied on the private sector industries, which is highly uncalled for and clearly intended to cause harassment for illegal gratification.
"It is most unfortunate if the face of law does not call for issuing such notices, then what extra legal provisions or relaxations are forcing BoR to find a revenue tap from industry which is already crippled in the present given situation where the new investment is not coming forward and proving counter-productive to investment efforts of Board of Investment, Sindh," he remarked.