LAHORE: Customs Post Clearance Audit (PCA) has found M/s Shaukat Soap and Ghee Industries (Pvt) involved in large scale misuse of DTRE, and evasion of duties and taxes along with default surcharge recoverable from the company, sources told Customs Today.
Sources told this scribe that Audit officers Muhammad Arshad Malik and Muhammad Jamil undertook Post-exportation audit of record of said DTRE approval under the supervision of Asma Bashir, Deputy Director and found that during the course of scrutiny of record it transpired that the company was engaged in the manufacturing and export of laundry soap and have been allowed to import inedible tallow as input goods.
The company was allowed DTRE approval for “direct exporter” for production and export of laundry soap to Afghanistan, they said, adding that, during scrutiny of export GD and other relevant record i. e bilties, it was found that the transporting vehicles mentioned on export GD and on bilties were different from each other while the online verification of vehicles, has transpired that those vehicles are registered as car and pick up.
The sources said that it was found that it was crystal clear that duty and tax free imported input-goods have not been consumed in the production of exported goods in those DTRE approvals. Either these raw materials are lying with you as closing stock or have been disposed off in such a manner as is not permitted under DTRE facility; however, in either situation the DTRE user is responsible for payment of duties and taxes under the law.
It was also observed that the duty free imported input-goods have not been consumed in the production of exported goods under this DTRE approval. Therefore, duties and taxes amounting to Rs. 2.117 million including custom duty Rs 503,498, sales tax Rs 1.218 million, FED Rs 55,385, withholding tax Rs 340,616 along with default surcharge is found recoverable under section 202A of Customs Act, 1969 read with under section 205 of Income Tax Ordinance, 2001 and penalty under Section 156(1) of Customs Act, 1969 of DTRE Rules 307A of Customs Rules, 2001 issued vide SRO 450 (I)/2001 dated 18-06-2001.
