ISLAMABAD: The Collector Customs Adjudication will hear tax evasion case of Rs 16.071 million here on September 29 (today).
According to details, Customs Post-Clearance Audit (PCA) detected tax evasion of Rs 16.071 million against Fatima Fertilizer Multan, which the company was supposed to pay as taxes on import of consignments.
Fatima Fertilizer imported 22 consignments, including electricity multi-core cables, steel pipes, steel structure ladder scaffolding, tube scaffolding, lubricants and welding wires, and evaded duty/taxes by claiming disallowed benefits under serial numbers 20 and 21 of the SRO 575 (I)/2006.
According to law, goods imported by Fatima Fertilizer do not fall in the category of machinery, equipment and accessories required for the production of manufacturing or production of any goods.
The Post-Clearance Audit found that exemption of customs duty in excess of 5 per cent and whole of sales tax could be enjoyed on import of machinery, equipment, spare parts and accessories under Sections 84 and 85 of the Pakistan Customs tariff required for the initial installation, balancing, modernization, replacement or expansion of oil refining downstream products, which are not notified by the Federal Board of Revenue.
The imported goods were lying in the list of locally manufactured items notified under SRO 575(I). Therefore, statutory rate of customs duty, sales tax and withholding tax were imposed on the imported consignments of Fatima Fertilizer Limited.
Customs found tax evasion of Rs 16.071 million involving customs duty to the tune of Rs 7.58 million, sales tax Rs 8.15 million and income tax Rs 0.32 million during the post clearance audit. Fatima Fertilizer and Customs submitted comments on the notices of customs adjudication on the previous hearing.
