MULTAN: The Model Customs Collectorate Multan has detected the customs duty and income tax evasion of Rs 3.168 million by Reliance Weaving Mills Ltd Multan.
Reliance Weaving Textile Mills Ltd got the approval of polyester staple fiber with allowed quantity of 516,429 kilograms import under Duty and Tax Remission Scheme (DTRE) against import GD No I-DTRE-1608348-221010, but they have never consumed nor exported goods allowed under DTRE. Reliance Weaving Textile mills Pvt has paid customs duty and taxes on concessionary rate under SRO 567(1).
The audit report revealed that DTRE holder failed to consume polyester staple fiber, duty and tax free import under DTRE. The DTRE user was directed to pay the customs duty and taxes on unconsumed quantity with subject to 10% customs duty of polyester staple fiber falling under HS code 5503.2010. However during the inspection it was revealed that Reliance Weaving Mills Pvt paid the customs duty of DTRE @ 6% under SRO 567(1) instead of payment at statutory rate of customs duty.
The Model of Customs Collectorate Multan has referred the case to Federal Board of Revenue (FBR) for tariff clarification and FBR has also clarified the DTRE user that duty and taxes should be paid @ 10%. Reliance Weaving Mills Pvt limited has violated the DTRE under sub section 2, 3A of Section 32 of the Customs Act 1969 and Rule 307(1) & 307 E (4) of SRO 450 and Section 161(2) of Income Tax Ordinance 2001 punishable under Clause 1,10(A) & 12 of Section 156 and Violation of Section 156.
Reliance commodities were already facing the trial of special duty tax evasion case in the Customs Adjudication.
