KARACHI: The Model Customs Collectorate Appraisement-East is going to file an appeal before the Sindh High Court (SHC) against M/s Sui Northern Gas Pipelines Limited for allegedly evading Rs 388.786 million duty and taxes.
During the scrutiny of the import data of Sui Northern Gas Pipelines Limited, the Post Clearance Audit (PCA) observed that the company imported various consignments of domestic gas meters and cleared the same from Appraisement-West, Appraisement-East and Port Qasim, through its clearing agents namely as M/s Muhammad Amin Clearing and Forwarding Agents and M/S Urooj Agencies availing inadmissible exemption/concession under Clause (2) and Clause (3) of SRO. 678(I)/2004 dated August 7, 2004.
The clauses of the above said SRO clearly stipulate that only such goods shall be entitled to the exemption by a company other than an E&P company, for its own use or its contractors, sub-contractors and service companies for its projects of oil and gas exploration and production, refinery, oil and gas pipeline, liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG) petroleum terminals, energy conservation, environment and safety controls. Further, without prejudice to above, the imported goods also fall within the ambit of C.G.O No. 11/2007 dated August 28, 2007, being locally manufactured.
The PCA in its report stated that the Sui Northern Gas Pipelines Limited by availing inadmissible exemption/concession under SRO. 678(I)/2004 evaded/short paid custom duty amounting to Rs 306.505 million, sales tax Rs 52.163 million, additional sales tax Rs 9.195 million and income tax Rs 20.922 million, while the total amount is Rs 388.786 million.
After the PCA issued contravention report to the importer M/s Sui Northern Gas Pipelines Limited, the importer approached the Customs Appellate Tribunal that gave decision in the favor of importer. The Appraisement-East would challenge the decision in the SHC for review.






