Mohsin Siddiqui (Chief Reporter) 

The Federal Board of Revenue (FBR) has issued directives to Inland Revenue (IR) field formations regarding the recovery of sales tax and federal excise duty through bank account attachment, stipulating that such actions require prior approval from field committees.

Under these new instructions, the FBR has mandated that Chief Commissioners of IR adhere to specific guidelines for sales tax recovery. Tax recovery via bank account attachment, as per the FBR, can only proceed after the formation of a committee at the field level, comprising two senior Commissioners and chaired by the Chief Commissioner Inland Revenue.

These instructions specify that the initiation of tax recovery through bank attachment, as outlined in section 48 of the Sales Tax Act, 1990, and related rules, must be preceded by the committee’s approval, unless there are court restraining orders or stay orders from the Commissioner IR (Appeals) or the Tribunal.

The FBR has outlined procedures to be followed by field formations, emphasizing the proper exercise of jurisdiction, service of notices, and adherence to due process before undertaking recovery measures. Furthermore, no further action for tax recovery shall be taken upon receipt of restraining orders from a court of law or stay orders from the Tribunal or Commissioner IR (Appeals).

In cases involving reference applications or civil petitions for leave to appeal before higher courts, Zonal Commissioners are instructed to exercise discretion, particularly when questions of law are at play, ensuring prudent decision-making in filing such applications or petitions, as advised by the FBR.