LAHORE: The Customs Appellate Tribunal has dismissed a case filed by M/s Lucky Cotton Mills (Private) Limited against Customs Adjudication collector and Lahore Customs Air Freight Unit (AFU) additional collector.
Technical Member Imran Tariq heard the case and said in his final remarks that there is no merit in the appeal and, therefore, it is not accepted and dismissed with no order. The fine of Rs 15,000 imposed on the appellant and his clearing agent is waived off, the member remarked.
According to the details, M/s Lucky Cotton Mills (Private) Limited imported consignment of Indian raw cotton and sought clearance through M/s HSU International DHA Lahore and claimed the benefits of sales tax exemption under SRO 1125 (I)/2011 date December 31, 2011 for the payment of sales tax at the rate of 2 percent instead of 16 percent.
During the course of audit, the customs authorities observed that above said consignment had to be liable for the payment of 16 percent along with the income tax whereas the importer has wrongly claimed the benefits of sales tax under SRO 1125(I)/2011. The adjudication authorities ordered to pay Rs 3.114 million under the head of sales tax and Rs 155,702 as income tax along with default surcharge.
The appellant M/s Lucky Cotton Mills aggrieved from the order passed by the Customs Adjudication collector and filed case before the Customs Appellate Tribunal on the grounds that the Order-in-Original (ONO) is bad in law and real fact of the case, without consideration of detail submitted by the appellant and some there.
On the other side, advocates appeared before the court and defended impugned order, he argued that adjudication authority has fully empowered to hear the case and pass order according to the law.
After hearing the arguments from both sides, the Customs Appellate Tribunal dismissed the case with order that respondent department should recover the default amount of tax with default surcharge under the Sales Tax Act, 1990 and Income Tax Ordinance, 2001.
