LAHORE: Post Clearance Audit (PCA) Lahore has unearthed duty and taxes evasion of Rs 43 million by M/s Glitron Products, 238-Attari Industrial Estate, 18-KM, Ferozepur Road, Lahore.
According to details, Deputy Director Ammara Durrani, Audit officers Muhammamd Jamil and Arshad Malik observed that the regulatory authority extended the DTRE facility to the user on account of value addition of 51.61 percent in the manufacturing and export of goods as declared by the user in Appendix-I. However, the record transpired that the goods were exported without value addition. This action on the part of the DTRE user is against the scope of the DTRE facility as mentioned in Rule 297(b).
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It was revealed that export data of M/s Glitron Products, Lahore, relating to the aforesaid DTRE approvals, has not been fed in to PACCS, as required under Rule 306 Customs Rules, 2001. As per rules, a bill of export or goods declaration filed for the export of a DTRE consignment under this sub-chapter shall contain DTRE approval number and shall be subject to all formalities for other declarations or endorsements, if any, and the procedure in respect of processing and examination of export goods, for the time being in force, shall be observed and on export of such goods the respective Collectorate of Customs shall feed the requisite information into PACCs against the DTRE approval number as per Appendix-I.
The PCA said that DTRE user has contravened the provisions of Section 32(3A) of the Customs Act,1969, further read with Section 3,6,7,11,22,26 of Sales Tax Act, 1990, Section 14 of Federal Excise Act, 2005 and Rules 297(b), 301, 306, 307, 307A, 307C, 307D and 307E of Sub-chapter 7 of DTRE Rules notified vide SRO 450(I)/2001 dated 18-06-2001 for recovery of both DTRE Approvals duties and taxes amounting to Rs. Rs.43,072,487/- (Custom duty Rs. 16,421,078/-, Sales Tax Rs.19,705,294/-, Special FED Rs.985,264, Withholding Tax Rs.5,960,851/-) alongwith default surcharge/additional duties (to be calculated at the time of payment) under section 202A of Customs Act,1969, section 205 of Income Tax O, taxdinance, 2001, under section 34 of Sales Tax Act, 1990, and which is punishable under Clause 156(1) 12A of Customs Act, 1969 and section 33 of Sales Tax Act, 1990 read with DTRE Rules 307A of Customs Rules, 2001 issued vide SRO 450(I)/2001 dated 18-06-2001 (amended till-date).
