KARACHI: Federal Tax Ombudsman (FTO) Asif Mehmood Jah has asked FBR to direct Pak Suzuki Motor Company (PSMC) to pay Kibor +3 percent per annum to the complainant against late delivery exceeding 60 days of initial booking.
Briefly, the complaint was filed against RTO and M/S PAK Suzuki Motors Company Limited. The vehicle was delivered to the complainant by M/S Pak Suzuki Motor Company LTD through its authorized dealer, after a delay of more than 5 and half months against the permissible period of 60 days. Rate of ST&FED was enhanced to 17% and 2.5% respectively, on vehicles exceeding engine capacity of 850CC, vide Finance (Supplementary) Act, 2022, at the time of supply of vehicle, vide Section 5 of the Sales Tax Act, 1990 and was accordingly charged, complainant prayed that additional amount as Sales Tax and FED should be refunded to him and action to be taken against M/S Pak Suzuki Motors for not meeting the delivery requirements.
During hearing Complainant, AR from M/s Suzuki Motors and DR from Customs Wing were appeared, The DR from M/s Suzuki Motors stated that provisional booking order, issued to the Complainant by M/s Suzuki Islamabad Motors, includes a customer declaration on behalf of the Complainant which reads “I hereby declare that I have read and understood all terms and conditions contained on reverse side of this provisional booking form and accept the same in total without any reservation and undertake to abide by the same and amendment thereby”. The Complainant stated that he had suffered a lot of mental and financial hardship on account of extra financial burden due to delayed delivery of vehicle which was finally delivered to him on 17.05.2022 and Suzuki Motors was responsible for the same. He also invited attention to Revenue Division’s Customs Notification SRO 656(I)/2006 and its amending notification SRO 837(I)/2021 dated 30.06.2021 wherein it had been clearly notified that “the importer-cum-assembler or Original Equipment Manufacturers (OEM) shall pay KIBOR plus 3% per annum to the customer against delayed delivery exceeding 60-days of initial booking.
Arguments of both parties were heard and written, Tax Ombudsman observed that that Car was provisionally booked on 27.10.2021 and was to be delivered within 60-days of provisional booking with end date on 26.12.2021, much before the enforcement of the Finance (Supplementary) Act, 2022, the FED @ 2.5 % was imposed on vehicles upto 1300cc, similarly, amendment regarding sales tax was made in the Eighth Schedule to the Sales Tax Act, 1990.
FTO’S finding also stated that M/s Pak Suzuki Motor Company Limited, Karachi is bound and liable to pay to the Complainant KIBOR +3 percent per annum against late delivery exceeding 60 days of initial booking on the whole of the deposited amount.
Hence, Tax Ombudsman directed Chief Customs (Tariff & Trade), FBR, to direct M/s Pak Suzuki Motor Company Limited, Karachi, to pay to the Complainant, compensation of KIBOR +3 percent per annum on whole of the deposited amount at the time of initial booking within a period of 45 days and submit statement details to EDB or IOCO, as per law and Member Customs (Ops) to issue directions to all Customs field formations to withdraw the facility of special exemptions/concessional rate of Customs duty at import stage provided vide para 1 of SRO 656(I)/2006 in case the due amount of KIBOR +3 percent is not paid to the Complainant by M/s Pak Suzuki Motor Company (Ltd), Karachi within the given time frame and as per law.