FAISALABAD: Customs Adjudication Collector Raja Tahir Majeed has quashed the allegations of tax evasion against Kamal Hosiery Mills by deciding case in favour of the company.
The Model Customs Collectorate Bond Section, while auditing the record, found that Kamal Hosiery Mills, which also have manufacturing licence No. 08/MFG/ FSD, got cleared its consignments from Karachi Customs availing the benefits under SRO 450(1) in wake of duty/taxes.
The company imported chemicals, optical brightener and other items after getting permission from Ministry of Commerce.
After scrutinising the data, the Faisalabad Customs asked the company to pay duty/taxes amounting to Rs 7.4 million including customs duty Rs 6.07 million, sales tax Rs 801,747 and withholding tax Rs 532,494, besides referring the case to adjudication.
The adjudication collector heard the arguments of both sides and in light of the findings; he accepted the explanation of the respondent, as the department could not prove charges against the company. The court said that demand of duties and taxes from the company was not justified.
Collector Raja Tahir Majeed ordered the customs to withdraw the show cause notice for the recovery of taxes.
