MULTAN: Collector Customs Adjudication has issued Order-in-Original (ONO) against Fatima Fertilizer Company in three tax evasion cases of .
The Customs Post Clearance Audit formed three contraventions which were detected during the scrutiny of the import clearances of Fatima Fertilizer Company Limited.
Fatima Fertilizer Company had imported 22 consignments of stainless steel pipes, seamless steel pipes, pipe Astma, seamless carbon steel pipes, carbon steel heat exchange ,carbon steel pipes, stainless steel fined tubes , PVC cable flexible, frequency cable, power cable ,flat cable, logrease (lubricant) medium duties steel racks, light duties steel rack etc. during the year 2011,2012 and 2013 and claimed the benefit of SRO 575 (I)/2006.
During the audit it revealed that these imported goods are not covered under the definition of plant, machinery, equipment, spares and accessories. These imported items were found consumables and are entitled to benefit claimed by importer under SRO 575 (I)/2006. Fatima Fertilizer were required to pay statutory duty on these imported items and their argument that show cause notice was barred by the time under section 32(3) of the customs act 1969 in respect of cleared goods is not reasonable .the issued Fatima Fertilizer response was not reasonable.
It was further proved in the hearing that Fatima Fertilizer have admitted that they have paid duties and taxes by not availing any benefit of SRO on various GD,s of identical goods. The importer has tried to hide facts of the import from the Customs. They failed to prove any facts provided by the Post Clearance Audit during of the hearing and hence issued show cause notices stand established. There Fatima Fertilizer directed to immediately deposit the demanded amount of duties and taxes Rs 16.071 million along with additional duty and default surcharge under the relevant provisions of Customs act 1969 and sales tax act 1990.In addition to this Customs Adjudication have imposed penalty to importer on equivalent value of the import goods under clause 10 A and 14 of section 156 (I) of the customs act 1969 and further penalty of 5% to the equivalent amount of sales tax recoverable under section 33(5) of the sales tax act 1990 are imposed on the firm.
Due to identical nature of other two cases of Fatima Fertilizer company for their import consignment of worth Rs 140.910 and Rs 113.06 million respectively in two remanded cases by Customs Tribunal Appeal. Collector Customs Adjudication Raja Tahir Majeed issued same order in-original in the further two cases due to identical contents and facts of the case.
Collector Customs Adjudication Raja Tahir Majeed have finalized the three contravention cases of worth Rs 270.041 million against Fatima Fertilizer Limited .Customs Adjudication directed Fatima Fertilizer to deposit equivalent amount of taxes of their import goods.
