MULTAN: Customs Adjudication issued Order-in-Original in violation of Duty and Tax Remission on Exports (DTRE) against Fazal Rehman Fabrics Ltd.
Fazal Group, is one of the oldest and largest Textile Group in Pakistan, with operations in Cotton Ginning, Yarn Manufacturing.
Fazal Rehman Fabrics Ltd Multan is the exporter of finished goods they have applied for DTRE approval under the Rule-298 of Sub-chapter7 of SRO 450(I)/2004 dated 18/6/2001.Customs Multan have set the permission to export Polyester fabric of 500,000 kilogram initially and then quantity of Polyester fabric was stretched to 2000,000 kilogram for manufacturing of goods.
Bulk of the Groups sales are generated from exports .During the course of scrutiny it was revealed that Fazal Rehman Fabric Ltd Multan have exported amount of 998,543 kilogram of 100% Polyester fabric and in this DTRE user have misused 1457 kilogram of 100% Polyester fabric.
The total value of purchased polyester fabric was almost Rs.253.49 million .The value of 1457 kilogram polyester fabric was almost RS.126,312 including customs duty, Sales tax and withholding tax .
In this way DTRE user contravened sub -section of 32 &307 A of SRO 450/2001 punishable under section 156 (1) of the customs act 1969 section 33,34,36 of sales act.
Customs have made out a contravention case and forwarded the case for further adjudication. Deputy Collector Customs Adjudication after examining the record and respondent have also admitted their charges surfaced by Customs alleged Fazal Rehman Fabric Ltd is liable to pay duty charges of Rs.126,312 .Therefore Rs.126,132 amount recoverable from Fazal Rehman Fabric Ltd under sub section 3A of Section 32 of the Customs act 1969.
Further Deputy Collector Customs Adjudication imposed penalty of Rs.5000 to Fazal Rehman Fabric Ltd under section 156(I) of Customs act 1969 act along with additional duty taxes in the final judgment.






