FAISALABAD: The Model Customs Collectorate (MCC), Audit Cell Customs Dry Port Faisalabad, detected duty and tax evasion worth Rs02million by M/s Al Quresh Fabrics by importing 100% polyester white fabrics in their manufacturing through Licence No: 05/MFG/FSD/2014 on scrutiny of shipping bills.
Sources told Customs Today, Model Customs Collectorate, Faisalabad Audit Cell Customs, during the course of audit for the period 31-10-2014 to 11-07-2016, M/s Al Quresh Fabrics Punjab Industrial Estate Faisalabad imported 100% polyester knitted white fabrics in manufacturing for which they were issued Licence No: 05/MGF/FSD/2014.
On the scrutiny of shipping bills and allied documents provided by the licence, it was found that the licensee has made export of whole finished goods with the description of goods as 100% cotton bleached quilted fitted mattress protector and PC 52/48 mattress protectors as well as pillow protector instead of 100 percent polyester bleached fitted mattress protector. The licensee has contravened the provision of Section 352(1) of the Customs Act-1969.
During the scrutiny of data that company export of 100% cotton and 52/48 PC made goods cannot be treated as export of 100% polyester knitted fitted mattress protector. On this account, Rs02million as duty and taxes are recoverable on the imported input goods along with additional duty and taxes since the licensee has failed to export the input goods under SRO 450(1) 2001 dated 18-06-2001.
It has been determined that the company has deposited Custom Duty (CD) of Rs898243, Sales Tax (ST) worth Rs763506, Income Tax (IT) Rs315283 as detailed in annexure A. The Faisalabad customs authorities have intimated the company to pay the evaded amount of duty and taxes.
The contravention report has been submitted to the Deputy Collector (DC) Bond MCC Faisalabad for onward submission to the collector of customs adjudication for adjudication.
It was intimated further that if no one appears or no reply is received then it shall be deemed that the part has nothing to offer in rebuttal of the observation and case shall be dealt as per law on the basis of facts available on record with the MCC audit cell authorities.
