ISLAMABAD: Collector Customs Adjudication Ihsan Ali Shah has passed Order in Original No. 124 of 2017 in contravention report no.56, reported by Customs Intelligence and Investigation, ordering M/s Charisma Catering, G-11 Markaz, Islamabad, to pay the evaded duty and taxes of Rs 39.405 million for allegedly availing concessions in violation of SRO 1125 (1) 2011. A penalty of Rs 2 million was also imposed on the company.
According to details, M/s Charisma imported polyester and viscose fabric of assorted colors from China at Islamabad Dry Port and evaded duty and taxes by claiming undue benefit of SRO 1125(1)2011.
It was revealed during investigation that the name of the importer was not on the Active Taxpayers List (ATL). The Regional Tax Office was confirmed that that the importer is non-active and suspended on 25.05 2015. This fact dis-entitled M/s Charisma Catering from sales tax exemption in terms of SRO 1125(1).
Collector Adjudication has said in ONO that, despite issuance of show cause notices and several opportunities of personal hearing M/s Charisma have not come forward to defend the charges leveled in the show cause notice. This establishes the fact that the importer is not interested to defend the charges leveled against him as they nothing to offer in defense.
The perusal of the case documents shows that the importer M/s Charisma Catering were not on the active tax payer list during the period they claimed benefit of concession Rs29.405 million on 13 GDs under SRO 1125 (1), whereas it was mandatory condition of said SRO that the claimant was required to be on the ATL. Thus from the said report it is prima facie borne out that the main condition of entitlement was not fulfilled by the importer but they still claimed the benefit of SRO in violation of the SRO 1125(1) 2011. The charges leveled against importer are established.
