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Home Karachi

Adjudication-II issues show cause to M/s Master Beverages for Rs 26m tax/duties evasion

byAftab Channa
13/05/2016
in Karachi, Latest News
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KARACHI: The Pakistan Customs Collectorate of Adjudication-II has issued a show cause notice to M/s Master Beverages and Food Limited, Gujranwala, for evading duties/taxes to the tune of Rs 26 million.

According to sources, during scrutiny of import data related to concessionary imports/clearances of plant, machinery, equipment and apparatus, including capital goods for various industries/sectors made under Fifth Schedule to the Customs Act 1969 for use in  mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry, it has been observed that certain importers availed the concession illegally because,  under this schedule, concession is available to the imports exclusively made by the manufacturers after fulfilling the conditions specified in column (5) of the table given in the schedule.

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In addition to that only those goods are liable to such concession which are not listed in the locally manufactured items, notified through a Customs General Order issued by the Federal Board of Revenue (FBR) from time to time or, as the case may be, certified as such by the Engineering Development Board; and for such machinery and equipment imported as plant for setting up of a new industrial units provided the imports are made against valid contract (s) or letter (s) of credit and the total clearance and forwarding value of such imports for the project is US $ 50 million or above.

Sources said the M/s Master Beverages and Foods Limited imported consignments through Appraisement (West), Karachi by willfully and knowingly claiming inadmissible and illegal benefit of the Fifth Schedule to the Customs Act 1969.

The goods are meant for establishing dairy farm but on-line NTN verification available on FBR’s website shows that the principal business activity of the importer is ‘manufacture of soft drinks, production of mineral water and bottled waters’ which, obviously has no connection with the dairy industry. In addition to that, the conditions specified in column (5) of the table given in the schedule for the import of such goods is that the goods shall be imported by the agriculture sector only.

The PCA authorities had instructed the importer to pay the short-paid taxes/duties as soon as possible however the importers failed to respond. The adjudication collectorate has finally issued a show-cause notice to the importer asking him to appear before the authority or depute his representative for the case.

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