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Home Breaking News

Collector Ahmed Mujtaba Memon issues ONO against Tata Textile Mills for Rs 489m tax evasion

bySohail Rab
08/01/2015
in Breaking News, Karachi, Slider News
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KARACHI: Customs Adjudication Collector Ahmed Mujtaba Memon has issued order-in-original (ONO) against Tata Textile Mills Limited for its alleged involvement in importing machinery, spare parts and raw-material into export oriented unit above its face value of licence i.e. Rs 50 million.

According to details, the Model Customs Collectorare of Export has reported vide its contravention report No PWL-15/2010-MFG-Bond/Exp  that the Tata Textile Mills Limited under SRO-327(I)/2008 imported plant, machinery, equipments, apparatus, raw cotton, polyester fibre and viscose fibre for the export oriented unit without paying Rs 489 million duty/taxes.

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In the contravention report, the MCC-Export said that the importer had failed in achieving export target prescribed under Sub-Clause (I) of Clause (d) in Sub-Rule (I) of Rule 2 of SRO-327(I)/2008 and import of goods in excess of approved face value of license of Rs 50 milion.

The MCC-Export was of the view that the importer committed an offence under Rule 14(5) of SRO-327(I)/2008 read with under Section 32(1) (2) (4) of the Customs Act 1969, Section 36(I) of the Sales Tax Act 1990, Section 14 of the Federal Excise Act 2005 and Section 162 of the Income Tax Ordinance 2001 for violating Sub-Clause (I) of the Clause (d) in Sub-Rule (I) of Rule 2 of SRO-327(I)/2008 during January 2011 to December 2012 onwards besides imposition of penalty under Clause (1) of Section 156(I) (14) of the Customs Act, 1969 and Clauses (1), 10 A and 14 of Section 156(1) of the Customs Act 1969 read with Sub Rule 5 of Rule 14 of SRO-327(I)/2008.

Whereas, the Tata Mills Limited were granted a licence No PWL-15/2010 for operating an export oriented unit under SRO-327(I)/2008. The licencee was authorised to import plant, machinery, equipment and apparatus, including capital goods to be used solely within the limits of export oriented in terms of SRO-327(I)/2008 besides import of raw cotton, polyester fibre and viscose fibre required for manufacturing of home textile.

During the scrutiny of data, the MCC-Export found that the importer availed exemption of duty/taxes worth Rs 489 million over and above the face value of the licence of Rs 50 million during Jan 2011 to December 2013.

In the judgement, the collector said that the charges level in the SCN against the importer stand established and ordered to pay customs duty and taxes Rs 489 million in terms of Sub-Rule 5 of Rule 14 of SRO-327(I)/2008 read with Section 32(1) (2) (4) of the Customs Act 1969, Section 36(1) of the Sales Tax Act 1990, Section 14 of the Federal Excise Act 2005 and Section 162 of Income Tax Ordinance 2001.

The collector of Customs Adjudication-II has also imposed penalty of Rs 5 00,000 on the importer under Clause (1) 10 A and 14 of the Section 156(I) of the Customs Act 1969.

 

Tags: Collector Ahmed Mujtaba Memon issues ONO against Tata Textile Mills for Rs 489m tax evasionCustoms Collectorare of Export has reported vide its contravention report No PWL-15/2010-MFG-Bond/Exp that the Tata Textile MillsRule 2 of SRO-327(I)/2008 and import of goods in excess of approved face value of license of Rs 50 milion.Sales Tax Act 1990Section 14 of the Federal Excise Act 2005 and Section 162 of Income Tax Ordinance 2001.

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