Alternate Dispute Resolution Rules, 2002
26th October, 2002
In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with sub-section (6) of section 47A thereof, the Central Board of Revenue is pleased to make the following rules, namely: –
1. Short title, application and commencement : —
(1) These rules may be called the Alternate Dispute Resolution Rules, 2002.
(2) They shall apply to all cases of disputes brought or specified for resolution under section 47A of the Act.
(3) They shall come into force at once.
2. Definitions : —
(1) In these rules, unless there is anything repugnant in the subject or context : —
(a) “Act” means the Sales Tax Act, 1990;
(b) “applicant” means a person or a class of persons who has brought a dispute for resolution under section 47A of the Act and these rules;
(c) “Committee” means a Dispute Resolution Committee constituted under sub-section (1) of section 47A of the Act for any particular dispute, or a class of disputes;
(d) “dispute” means, subject to the exclusions given in the proviso to sub-section (1) of section 47A of the Act, a case or class of cases where, for evidently valid reasons, a person or a class of person does not agree with or is otherwise aggrieved with any proceedings, action, order, decision or judgement as to the determination of tax including additional tax and imposition of penalty under the Act and prima facie deserves relief for the elimination of possible hardship.
(2) All other words and expressions used but not defined in these rules shall have the same meanings as are assigned to them in the Act.
3. Application for alternate dispute resolution : — Any registered person or a class of such persons interested for resolution of any dispute under section 47A may submit to the Chairman, Central Board of Revenue, a written application for alternate dispute resolution stating, inter alia, the following : —
(a) The Collectorate of Sales Tax and the office of the Sales Tax with whom a dispute has arisen;
(b) the particulars of the case;
(c) the grounds on the basis of which a resolution of a dispute is being sought by the applicant duly supported with relevant documents;
(d) the extent or the amount of sales tax, additional tax and penalties etc., which the applicant agrees to pay, if any;
(e) details of amounts already paid, if any;
(f) the particulars of any person who will represent the applicant; and
(g) an undertaking on a stamp paper of fifty rupees witnessed by two persons to the effect that the dispute has not been decided by any High Court or the Supreme Court of Pakistan and the applicant shall, if required, pay the remuneration of the members other than a public servant, of the Committee to the extent and in the manner specified by the Chairman of the Committee as laid down in rule 5.
4. Appointment of Alternate Dispute Resolution Committee : —
(1) The Board, on its own motion or after examination of the contents of an application by a registered person and facts stated therein and on satisfaction that a dispute deserves consideration for resolution for the removal of hardship under section 47A of the Act, may constitute a Committee for examination of the facts and law involved in the dispute and for taking other actions as provided under sub-section (3) of section 47A of the Act.
(2) The Board may appoint one of the members, other than a public servant, of the Committee to be its Chairman.
(3) In order to constitute a Committee under sub-rule (1), the Board may specify the time within which the Committee shall be required to submit its report to the Board:
Provided that the time so specified may, if requested by the Chairman of the Committee for reasons to be recorded in the request, be extended by the Board to such extent and subject to such conditions and limitation as it may deem proper.
5. Remuneration of the members of the Committee : —
(1) Members of the Committee other than public servants shall be paid by the applicant remuneration of members covering the travelling allowance and daily allowance.
(2) The extent and amount of remuneration and the manner of payment thereof shall be decided by the Chairman of the Committee under intimation to the applicant.