FAISALABAD: The Customs Collectorate audit cell has detected tax evasion of Rs 1437076 by M/s Al Rehmat traders (Private) Limited on the import of duty free grey, dyed yarn, dyed fabrics, and chemicals.
Sources told to Customs Today, M/s Al Rehmat Traders (Pvt Limited have neither made any import of input goods under chapter XV-Warehousing of customs rules 2001 notified vide SRO 450(1)2001 dated 18-6-2001 nor exported any consignment of input goods. The licensee has finished an undertaking in this regard.
Further the PRAL data has also been retrieved for the period from 1-07-2013 to 31-10-2016 which also transpired the fact that the licensee has not imported any consignment of input material the period under audit. It is observed that the licensee has not imported any consignment of input material during the period under audit. The license has expired since 30-08-2014 and as per rules 344 of the custom rules 2001. The license is liable to process for cancelation as the licensee has failed to utilized the license for more than three year.
During the scrutiny of their import data, M/S Al Rehmat traders Faisalabad has revealed that the licensee has deposit the due amount of taxes involved on the waste occurred during the manufacturing process during the period upto 30-62013. But the licensee has failed to deposit an amount of Rs14,37,076 besides surcharge under section 86(b) of the Customs Act 1969 involved on the input material (fabrics ) imported vide GD No, KAPR-ST-295 dated 6-09-2010 which they have failed to re-export within the stipulated warehousing period of two years.
The audit cell has formed contravention report against M/s Al Rehmat Traders Limited under provisions of Section 19, 21(a)&86 of the Customs Act 1969 read with Rules 344, 350(4), 352 and 358 of the customs rule 2001 notified vide SRO,450(1)/2001 dated 18-06-2001 further R/W relevant legal provision of Sales Tax Act, 1990 and Income Tax Ordinance 2001.
It is pertinent to mention here that the Federal Borad of Revenue has already conveyed its inability vide its letter C.No, 5(4)EP/2015-151470-R dated to accede to the request of licensee for extension in utilization period of input goods imported vide GD No, KAPR-ST-295 dated 6-09-2010.
Deputy Collector Audit cell has forwarded contravention report to collector Customs Adjudication for the trial after its detection.
