The Federal Board of Revenue has notified SRO 2085(I)/2026, introducing Rule 44P into the Sales Tax Rules, 2006, to establish the functions, powers and procedures of Faceless Assessment Units. Under the new framework, cases will be assigned through an automated allocation system, and designated officers will examine available records, audit reports and supporting information before initiating assessment proceedings under the relevant provisions of the Sales Tax Act, 1990.
The Faceless Assessment Units will be empowered to issue statutory notices, obtain information and evidence, conduct assessment proceedings, impose applicable penalties and default surcharges, and rectify mistakes apparent from the record in their assessment orders. Taxpayers will be required to submit replies, explanations and documentary evidence electronically through their designated IRIS accounts in accordance with Rule 44O. The framework also provides for electronic hearings, technical assistance from specialised units and physical verification under Rule 44Q where required.
The development represents an important procedural change in sales tax administration. For taxpayers, the emphasis will increasingly be on maintaining complete electronic records, preparing well-supported responses and monitoring proceedings through IRIS. However, automated allocation and electronic communication do not eliminate statutory safeguards, including the requirement to issue notices under applicable law and provide taxpayers with an opportunity of hearing. The effectiveness of the system will ultimately depend on procedural transparency, proper appreciation of evidence and adherence to the principles of natural justice.