Multan: Customs Adjudication Multan collector has issued the Order-in-Original (ONO) in four tax evasion cases of Ahmad Fine Textile Mills Limited of almost Rs15 million.
As per detail, Ahmad Fine Textile Mills Limited Multan got the Duty Taxes Remission for Export (DTRE) approval from Model Customs Collectorate (MCC) Multan under the Rule 307-C and it was allowed to import the Polyester Staple Fiber approved quantity of 700,000 kilograms under PCT heading 5503.2010. It was also allowed exporting the yarn and fabric of approved quantity of 667,158 and 530,000 kg respectively under the PCT headings 5509.5390 and 5513.1300.
While auditing, customs found that Ahmad Fine Textile Mills Limited has not exported the announce quantity of goods against DTRE approval on which authorities asked the textile mills to submit details regarding the usage of DTRE.
Customs found that the accused company had utilized the 695,901 kg imported polyester for yarn and fabric exports respectively which was 4098.5kg less than the imported quantity of 700,000kg.
On the other hand, Ahmad Fine Textile Mills claimed that the remaining quantity of polyester became wastage during the processing of raw material. It also submitted all the documents including export shipping bills, commercial invoices and bills for manufacturing of yarn and fabric which were exported outside the country after furnishing to prove its stand.
However, Multan Dry Port deputy collector took stand before adjudication that the textile mills has committed violation of Rule 306 of DTRE by using less quantity in production of yarn and fabric and also evaded tax on export of items.
Customs authorities could not prove their allegation of tax evasion imposed on textile mill while the allegation pertaining to procedural violation of DTRE was accepted by the adjudication.
After hearing the arguments, Customs Adjudication collector imposed the penalty of RS.60,000 on Ahmad Fine Textile Mills Limited in the four cases for committing procedural violation of DTRE under clause 1 of Section 156 (i) of the Customs Act 1969.
