The Central Board of Revenue (CBR) has the option to initiate criminal proceedings against the beneficiaries of illegal sales tax and excise duty refunds.
Official sources told Business Recorder on Monday that the Board has enough legal backing under sales tax and central excise duty laws to take action against persons involved in obtaining illegal refunds.
Meanwhile, the CBR has announced that it has launched legal proceedings against the payphone companies involved in obtaining illegal excise duty refund.
According to the Board, it has strongly contested the impression created by certain quarters that in fight of tax officials in favouring one unit or the other is major hurdle in smooth payment of refund.
In fact, the action by CBR against the payphone companies as well as the sales tax officials involved in the refund cases is entirely based on merit.
The CBR and its field formations have initiated necessary legal action against the payphone companies involved in obtaining illegal excise duty refund. Disciplinary proceedings have also been initiated against the sales tax officers involved.
To ensure that the proceedings are as per law, CBR had also sought guidance from the Ministry of Law about the legal status of refund obtained by these companies. Law and Justice Division has also ruled that the refund payment to payphone companies was not legal. The issue is sub judice before various legal forums and CBR feels that an attempt is being made to interfere in the legal proceedings, the Board added.
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