MULTAN: Collector Customs Adjudication Asif Abbas has imposed fine of Rs200,000 on M/s Ahmad Oriental Textile Mills (Pvt) Limited on procedural violation detected during audit.
According to the details, Multan Customs undertook post-exportation audit of record of M/s Ahmad Oriental Textile Mills (Pvt) Limited DTRE approval for the scrutiny of record. Multan Customs allowed DTRE approval for import of 950,000 kilograms of raw cotton to M/s Ahmad Oriental Textile Mills Limited and the input goods imported by the DTRE user under approval in the manufacturing of finished goods DTRE approval. Said DTRE user exported unapproved quantity of 174,852 kilograms 100% cotton yarn of worth Rs36.676 million under 12/s and 16/s without permission of Collectorate or IOCO which is violation of rule 300 and constitutes a substantive procedural violation M/s Ahmad Oriental Textile Mills Limited.
Multan Customs found that M/s Ahmad Oriental Textile Mills (Pvt) Limited has paid short taxes of Rs686,2755 during scrutiny of record because they have not obtained any permission from authorized authority.
All the export regimes i.e manufacturing bonds, export oriented units DTRE aims at boosting the export of Pakistan and these schemes have different procedural requirements but have same substantive provision that exporter needs to take permission from competent authority in this regard.
Audit report revealed that inputs were utilized by DTRE user within the time frame required under rule 305 of DTRE scheme ,notified SRO 450(I)/2001 and DTRE user availed wastage as determined by IOCO. There was no unaccounted charge against M/s Ahmad Oriental Textile Mills Limited. Collector Customs Adjudication Asif Abbas did not find any intentional violation committed by Ahmad Oriental Textile Mills Limited during trial and found procedural mistake from DTRE user after examining facts of audit report. Multan Customs have demanded for the submission of short taxes Rs.6862, 755 from Ahmad Oriental Textile Mills Limited but Collector Customs Adjudication refused their demand for the recovery of short taxes by terming it unjustified during hearing.
Collector Customs Adjudication Asif Abbas Khan imposed penalty of Rs200,000/ to M/s Ahmad Oriental Textile Mills Limited as charge for the procedural violation of not seeking DTRE amendment regarding count of yarn is substantiated on account of his failure to give a credible reason and penalty has been imposed in this regard to safeguard the national revenue.
