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Home Breaking News

Collector Adjudication Wasif Memon issues ONO against Pioneer Textile Mills

byAftab Channa
05/10/2015
in Breaking News, Karachi, Latest News, Slider News
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KARACHI: Collector of Customs Adjudication-I Dr Wasif Memon has issued Order-in-Original (ONO) against M/s Pioneer Textile for evasion of duties, taxes to the tune of Rs 6.3 million for availing inadmissible benefits of Pak-China Free Agreement SRO 659(I)/2007 dated 30.6.2007. A penalty of Rs 500,000 has been imposed on M/s Pioneer Textile.

The Directorate General of Post Clearance Audit Islamabad found that M/s Pioneer Textile imported various consignments of textile fabrics from China and cleared from MCC-Appraisement West, Karachi vide 21 Goods Declarations.

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And whereas audit scrutiny of GDs revealed that M/s Pioneer Textile Mills, Karachi claimed, availed benefits of Pak-China Free Trade Agreement SRO 659(I)/2007 dated 30.6.2007 which was not admissible as the consignor’s name as well as HS Code of the imported goods on the Certificate of Origin were different from those declared in the GDs and the bills of Landing/IGM, according to ONO available with Customs Today.

This inadmissible claim of benefit of SRO 659(I)/2007 dated 30.6.2007 resulted in short levy of customs duty Rs 6,051,239, sales tax Rs 181,550 income tax Rs 78,012 i.e. total Rs 6,310,801.

M/s Pioneer Textile Mills were issued audit observation to the above effect to which submitted a reply through their counsel, seeking certain clarification, which were sent to the counsel, but no response was received from the importer or their thereafter.

M/s Pioneer Textile Mills failed to submit any substantive arguments and failed to defend their case, hence have committed the offence specified in Section 32(1) & (2) of the Customs Act, 1969, Sections 3, 6 and 11 of the Sales Tax Act, 1990, and Section 148 of Income Tax Ordinance 2001; punishable under clauses (10-A) and (14) of Section 156(I) of the Customs Act 1969 read with Section 11, 33 and 34 of the Sales Tax Act, 1990 further read with relevant provisions of Income Tax Ordinance, 2001.

In the light of above reported facts, M/s Pioneer Textile Mills were called upon to show-cause as to why payment of duty and taxes amounting to Rs 6,310,801 may not be recovered/collected from then and penal action as warranted under the aforementioned provisions of law may not be taken against them.

Advocates Waseem, Ms Saira and Ms Afshan Rani of M/s S.W Law Associates Karachi appeared for hearing on behalf of the respondent but did not submit any written reply to the show-cause notice.

In view of the above, the charges leveled in the show-cause notice stand established. Therefore, M/s Pioneer Textile Mills are directed to immediately deposit short-levied, evaded amount of Rs 6,310,801 in government treasury under section 32(2) of the Customs Act, 1969 (along with default surcharge to be calculated at the time of payment) in terms of clause (14) of Section 156(I) of Customs Act, 1969 read with Sections 33 & 34 of the Sales Tax Act, 1990.  A penalty of Rs 500,000 is also imposed on the respondent M/s Pioneer Textile Mills.

 

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