FAISALABAD: The Model Customs Collectorate Audit Cell detected a duty and tax evasion worth Rs 20,315,329 by M/S Niagara Mills (Pvt) Limited by misusing the facility of SRO(1)/2010 through its License No: 02/MFG/FSD/2014.
Sources told Customs Today, that the said Audit Cell team was constituted under the supervision of Additional Collector Ghulam Mustafa. The audit team during a surprise visit of the said unit for physical stock taking during the course of audit from 21-01-2014 to 30-06-2016 of manufacturing Bonded warehouse noticed that regulatory duty on fabric print, argo print and pigment thickener is recoverable on all the import made by the licensee from Karachi during the above said period except on import GD cleared through Faisalabad dryport. Wherein, the leviable RD was charged and deposit by the licensee.
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Furthermore, the licensee did not obtain analysis certificate for fabric print T-180 and Argoprint 170 and imported duty free raw material without payment of duty ad taxes which were not allowed in said analysis cards under rule 351 of SRO 450(1)/2001.
As per analysis certificate the consumption of input material is allowed in square meters. But during the course of audit it has been observed that in export GDs input material is counted in Kgs which is against the rule issued vide SRO 450(1)2001.
The contravention report has been submitted to the Deputy Collector for onward submission to the Collector of Customs Adjudication.
