LAHORE: Customs Appellate Tribunal has dismissed a case filed by M/s MB and Co against additional collector of Customs Adjudication-VI-AFU Cargo Complex Allama Iqbal International Airport Lahore.
Imran Tariq member technical heard the case and said in his final remarks that there is no merit in the appeal and is therefore not accepted. However, the penalty of Rs 15,000 imposed on the appellant and his clearing agent is waived off.
According to the details, M/s Basfa Textile Mills Limited Ferozpur Road Lahore imported consignment of Indian raw cotton and sought clearance through M/s MB & Co. Private Limited. The company claimed the benefits of SRO 1125 (I)/2011 date 31 December 2011 for the payment of sales tax @ 2 percent instead of 16 percent.
During the course of audit, the customs authorities observed that above said consignment had to be liable for the payment of 16 percent along with the income tax whereas the importer has wrongly claimed the benefits of sales tax SRO 1125(I)/2011. Authorities ordered to pay Rs16,93,848 under the head of sales tax and Rs84,692 in income tax along with default surcharge.
The appellant aggrieved from the order passed by the collector of Customs (Adjudication) Lahore and filed case before the Customs Appellate Tribunal on the grounds that the order in original (OnO) is bad in law and beyond jurisdiction, the collector customs (Adjudication) is not authority to adjudicate the liabilities under the Sales Tax Ordinance 2011 and some others.
On the other side representative of department appeared before the court and defended impounged order, she argued that Adjudication authority has fully empowered to hear the case and pass order according to the law.
After hearing the arguments from both sides Customs Appellate Tribunal dismissed the case with order that respondent department should recover the default amount of tax with default surcharge under the Sales Tax Act 1990 and Income Tax Ordinance 2001.
