FBR files written statement before Senate panel

SOHAIL SARFRAZ

ISLAMABAD: The Cabinet Division had barred the Federal Board of Revenue (FBR) from filing writ petitions in high courts against the order of the President only in cases where the order of the Federal Tax Ombudsman (FTO) has been affirmed by the President.

This has been stated by the FBR in a written statement given before the Senate Standing Committee on Finance.

According to the FBR Chairman, Federal Board of Revenue (FBR) did not act beyond the ambit of the directions issued by the Cabinet Division vide Office Memorandum of 2016.

In the instant matter, the Collectorate of Customs Appraisement (PMBQ), Karachi filed a writ petition before the High Court of Sindh against the order of the President of Pakistan, issued by the Consultant (Legal Affairs), President’s Secretariat (Public), Aiwan-e-Sadr, Islamabad, in Representation dated 22.04.2025 filed by M/s MH Traders. The said representation assailed the order of the Federal Tax Ombudsman (FTO) dated 31.03.2025. The Cabinet Division’s above-referred Office Memorandum categorically bars departments from filing writ petitions against the order of the Honorable President only in cases where the order of the FTO has been affirmed by the President.

The operative portion of Para-2 of the OM provides: “Since the executive authority of the Federation vests in the President and the agencies either have been established or are controlled by the Federation, the aforesaid act of the agencies to challenge the Wafaqi Mohtasib findings/orders after their affirmation by the President is not in order.”

In the present case, however, the factual matrix is different. The FTO had rejected the complaints of the importer. Subsequently, M/s MH Traders filed Representations before the President of Pakistan, who accepted the same. Thus, there existed a clear contradiction between the findings of the FTO and the decision of the President. Since the Cabinet Division’s OM applies only to affirmed decisions of the FTO by the President, the instant matter being one of conflicting decisions fell outside the prohibition. Accordingly, the Collectorate was allowed to file the Writ Petition before the High Court of Sindh, which is fully in line with the spirit of the Cabinet Division’s directions.

Furthermore, the merits of the case also warranted filing of the petition, as two similar writ petitions involving the same importer were already pending adjudication before the High Court of Sindh. In the instant case (C.P. No. 4088/2025), the Court has been pleased to grant stay in favour of the department, the FBR Chairman added.