Independent Case Scruitny Committees for Sales Tax

Government of Pakistan Revenue Division Federal Board of Revenue Islamabad, the 21th Jluly,2026. NOTITICATION S.R.O. 1169 (l)12026.- In exercise of the powers conferred by sub-section (4) of section 47AAA read with section 50 of the Sales Tax Act, 1 990, the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Sales Tax Rules, 2006, namely:- In the aforesaid rules. after rule 62, the following new Chapter IX-A shali be inserted, namely: - "Chapter IX-A Independent Case Scrutiny Committees for Sales Tax ( I These rules shall provide for 62A. Independent Case Scrutiny Committees.- ) constitution of independent case scrutiny committees. 2. In this rule. unless there is anything repugnant in the subject or context,- (a) Chairman" means the Chairman of the Independent Case Scrutiny Committee; (b) "Commissioner" means as define under clause (5) of section 2 ofthe sales tax act, 1990. (c) "Committee" means any of the Independent Case Scrutiny Committees constituted under these rules for specified territorial jurisdiction; (d) "petition" means a petition to the Supreme Court under Articlel85(3) of the Constitution of the Islamic Republic of Pakistan or Federal Constitutional Court, arising from any ofthe tax law; (e) "reference" means a relerence filed under section 47 ofthe Act; (0 "Secretary" means an officer of Inland Revenue nominated by the Board for the purposes of the Committeel (S) "Serving member of the Committee" means an in service officer of BS 20 or above of lnland Revenue service; and (h) "tax laws" means the Income Tax Ordinance,200l (XLIX of 2001), the Customs Act, 1969 (IV of 1969), the Sales Tax Act, 1990, and the Federal Excise Act,2005 and includes any rules, regulations, or notifications issued thereunder. 3. The Board by an order shall constitute the following committees with powers, functions and jurisdiction, namely:-

Committee No. I S I Member Status Functions & Jurisdiction No. (l) (21 (3) ( I ) A retired Judge ol the (i) To timely examine each case and Supreme Court, Federal make recommendation to file or I Constitutional ( ourt or any ol' Chairman otherwise a reference before the the High Courts of Pakistan High Court. a petition before the An Advocate having not less Supreme Court or Federal than fifteen years' experience Constitutional Court; in tar and commercial (ii) To review pending references and litigation before the High petitions periodically to determine 2 Member Courts and , or the Supreme whether continuation of litigation Court of Pakistan I is wananted in the interest ofrevenue: (iii)To maintain a database of settled legal questions and relevant A senior serving or retired Member precedents to guide future IRS or BS 20 0r litigation decisions and ensure -) :;:::'""* consistency; and (iv issues )To identifo s)slemic requiring legislative or administrative intervention and I recommend appropriate measures I to the Board. I Jurisdiction: Relerences to be filed before Islamabad High Court and CPLAs before the Supreme Court and Federal Constitutional Court by LTO Islamabad. CTO Islamabad. RTO lslamabad. RTO Peshawar. RTO Abbottabad DG I&l Islamabad and its Directorates.

Committee No. 2 S. Me mber Status Functions & Jurisdiction No. ( I ) (2t (-)) (4) case and I A retired Judge of the I To timely examine each Supreme ( ourt. Federal I make recommendation to fil" o, I I Constitutional Coun or any of | 652;.rr.,2n olherwise a relerence belore the I the High Courts of Pakistan I High Court. a petition before the I Supreme Court or Federal An Advocale having not less Constitutional Court; I than fi lleen years' experience (ii) To review pending references and in tax and commercial petitions periodically to determine litigation before the High \ hether continualion of litigation Courts and / or the Supreme NIer.ntrr Court ol Pakistan is wananted in the interest of revenue: maintain a database of settled legal questions and relevant I precedents to guide future A senior serving or retired litigation decisions and ensure offlcer of the IRS of BS 20 or above consistency; and -) N4en.rber identify systemic issues requiring legislative or administrative intervention and recommend appropriate measures to the Board. Jurisdiction: References to be flled before Lahore High Court and I I CPLAs before the Supreme Court and Federal Constitutional Coun b1 ] I Lto Lahore. LTO Multan. CTO I Lahore. RTO Lahore, RIO L Rawalpindi. RTO Gujranwala- I RTO Faisalabad. RTO Multan. RTO Bahaualpur. RTO Sialkot. II Sargodha and RTO Sahiwal. I I RTO

Committee No. 3 S. Member Status Functions & Jurisdiction No. (4) (l) ( 2 ) ( J ) A retired Judge of the (i) To timely examine each case and Supreme Courl, Federal make recommendation to file or 1 Constitutional Coufi or any of Chairn-ran otherwise a reference before the the High Courts of Pakistan High Court, a petition before the An Advocate having not less Supreme Coud or Federal than fifteen years' experience Constitutional Court; pending references and in tax and commercial (ii) To review litigation before the High petitions periodically to determine 2 Member Courts and / or the Supreme whether continuation of litigation Court of Pakistan is warranted in the interest ofrevenue; (iii)To maintain a database of settled legal questions and relevant A senior serving or retired precedents to guide future officer of the IRS ofBS 20 or litigation decisions and ensure J above Member consistency; and issues (iv tTo identill systemic requiring legislative or administrative intervention and reconrmend appropriate measures to the Board. Jurisdiction: References to be hled before Sindh High Court, Balochistan High Court and CPLAs before the Supreme Coufi and Federal Constitutional Court by LTO Karachi, CTO Karachi. RTO-I Karachi, RTO-ll Karachi, RTO Sukkur. RTO Hyderabad and RTO Quetta.

(4) The Secretary as defined in clause (f) of sub-rule (2) of these rules shall provide secretariat and administrative supporl to the Committee and shall- (a) convene meetings with the approval of the Chairman, circulate the agenda, maintain minutes and records ofproceedings: (b) coordinate with the concemed field formations and obtain records, comments, briefs or any other information required by the Committee; (c) communicate the decisions, recommendations and directions of the Committee to the concemed Commissioners and field formations. and ensure necessary follow-up; (d) maintain the records, database and correspondence ofthe Committee; (e) keep the concemed Commissioners informed regarding the proceedings of cases before the Committee; and (0 perform such other functions as may be assigned by the Committee, the Chairman or the Board. " (5) The Committee may co-opt a Chartered Accountant as a non-voting member, where it is deemed necessary. The remuneration ofsuch non-voting member shall be determined by the Board. (6) The Board may, for the purpose of identifying suitable candidates, constitute a Search Committee, the composition, terms of reference and procedure whereof shall be determined by the Board. (.7). Proceedings and records placed before the Committee shall be confidential. Any member having a conflict of interest in a matter shall recuse himself, and such recusal shall be recorded in the minutes. (8) The Secretary shall convene meetings, circulate agenda, maintain minutes and a case register or docket, and communicate recommendations of the Committee to the Commissioner concemed. (9) The Commissioner having jurisdictions for the purposes ofthis rule shall, within ten days ofreceipt ofthe order ofthe AIIR or the High Court, refer a case for pre-filing scrutiny, and the Secretary shall place such cases before the Committee accordingly. (10) The referral shall contain all material particulars including the manner ofreference, documents required, revenue implications involved, questions of law requiring interpretation, precedents and settled law, basis ofthe case, the original decision, the appellate decision, where applicable, and the recommendations of the Commissioner concemed, where applicable, and all relevant documents shall be attached thereto.

jurisdiction ofa (l 1) The Board may for reasons to be recorded in writing transfer the case from one scrutiny committee to another Committee. (.12) The Committee may call for any record, document, brief, or clarification from any oflice or field formation through the Secretary. (13) The Committee shall convene on a daily basis, whether in person or online, and shall prioritize its workload so as to ensure that every recommendation is finalized within a period of fifteen days from the date ofreferral: Provided that where, for reasons to be recorded in writing, a recommendation cannot be finalized within the said period, the Committee may extend the said period to such further time but not beyond limitation period provided in the law as may be necessary, subject to intimation to the Board. (14) Where the Committee recommends non-pursuance of any case. the Secretary shall intimate the Commissioner concemed lbr compliance of such directions. (15) The quorum for a meeting of the Committees shall be two Members, including the Chairman. (16) The decision shall be taken by majority vote and shall be recorded in writing; any dissenting opinion. ifrecorded by a Member, shall form part ofthe official record. (17) While making decision of filing of reference or petition. the committee shall keep in view the binding presidents set up by the Supreme Court of the Pakistan or Federal Constitution Court, revenue involved in the particular case or other similar cases and interpretation of law and facts ofthe case (18) If the Committee may not render a decision within the prescribed timeline (including any extension granted). the case shall be deemed to have been cleared for filing, subject to compliance with all other applicable legal requirements and the Secretary shall record in writing that the prescribed period has been lapsed and intimate Commissioner concemed accordingly. (19) Where the period ollimitation for filing a ref'erence or petition is expiring within fifteen days, or where there is imminent and substantial revenue loss requiring urgent intervention, the matter shall be placed before the Chairman as an emergency case.

(20) The Chairman may, after prima facie satisfaction of urgency, approve filing of reference or petition. ( 19) shall be subject to post-facto (21) Any emergency approval granted under sub-rule review by the full Committee within thirty days of the decision and the committee may decide to withdraw the case if the law and facts so permits. (22) The Committee shall cause to be published, on a yearly basis, anonymized summaries of its recommendations, excluding confidential commercial information and taxpayer identifying details. The published summaries shall include the questions of law considered, the decision criteria applied. and the recommendations made. (23) The Secretary shall maintain a searchable database of published decisions for reference by lield formations and to ensure consistency in future decisions. (24) Chairman and Members shall hold office for a term of one year which may be extendable for a further teml on continued fitness and satislactory performance, as may be decided by the Board. (25) Chairman or any Member, may resign from his office at any time by writing under his hand addressed to the Board with thirty days notice. (26) Chairman or any Member may be removed by the Board on grounds of conflict ofinterest, misconduct, breach ofconfidentiality, or inability to perform functions, after providing an opportunity of being heard. (27) The Chairman and Members of each Committee shall be paid fees as follows:- (a) the Chairman shall be entitled to a monthly fee oftwelve hundred thousand rupees. and in addition thereto, a per case fee of twenty-five thousand rupees in respect of which a recommendation is made. whether in favour of filing or otherwise. subject to a maximum of twenty cases per month; (b) the Advocate Member shall be entitled to a monthly fee of eight hundred thousand rupees, and in addition thereto. a per case fee of twelve thousand and flve hundred rupees in respect of which a recommendation is made. whether in favour of filing or otherwise. subject to a maximum of twenty cases per month; (c) where a retired officer of Inland Revenue is nominated as a Committee member. he shall be entitled to a monthly fee of eight hundred thousand rupees. and in addition thereto, a per case fee of twelve thousand and five hundred rupees in respect of which a recommendation is made, whether in

favour of filing or otherwise, subject to a maximum of twenty cases per month; (d) the remuneration of the support staffshall be determined by the Board; and (e) The serving Board Member and the Secretary shall not be entitled to additional remunerationl except as provided in rules related to reward and honorarium. (28) All Members shall be entitled to TA/DA for offrcial travel as admissible to a grade 2l officer of the Federal Govemment. (29) The Committee shall submit an annual report to the Board by the 31st of March each year, covering the preceding financial year and shall consist of,- (a) the number ofcases reviewed, and recommendations made (to file, not to file, or to withdraw); (b) the outcome offiled references and petitions (decided in favour, against, pending, or settled); (c) analysis of success rate and factors contributing to favorable or unfavorable outcomes; (d) revenue implications of decisions made pursuant to Committee recommendations; (e) identification of recurring legal issues and systemic problems requiring legislative or administrative intervention; and (f) recommendations for improving litigation management and enhancing the effectiveness of the Committee. (30). The annual report shall be placed before the Board for consideration and appropriate action.". IC. No.3(62)ST&FE-Policy/20261 ,J (lzh Second Secretary (ST