LAHORE: Collectorate of Customs Adjudication Deputy Collector Ambreen Ahmad issued Order-in-Original ONO 115/2015 in tax evasion case.
According to the details on a credible information was received in Directorate of Intelligence and Investigation-FBR Lahore that M/s Numeric Distribution Network Limited was importing “Camel” brand cigarettes on which federal excise duty and sales tax were payable on the retail price but the price did not cover the duties and taxes paid by the importer on the imported goods.
During scrutiny of import data it was also revealed that according para (vii) of SRO 53 (KE)/2009 dated 1.7.2009 with effect from the 1st July, 2009, free goods cash rebates, free samples, discount of goods below the market value shall not be given or offered for the purpose of advertisement of tobacco product to consumers of tobacco products to generate sales or promote smoking.
Deputy Collector in ONO said that the respondents have intentionally mis-declared the retail price and evaded a huge amount of duty and taxes leviable thereon. Therefore the charges of mis-declaration of retail price which according to the applicable rule is the basis of determining the federal excise duty (FED) of the imported cigarettes and evasion of duty and taxes leviable thereon leveled against the respondents in the contravention report as well as in the show cause notice stand established. Evaded amount of duty and taxes to the tune of Rs1,00,00,000/(Pak rupees one crore only) is imposed on M/s Numeric Distribution Netowrk.
