LAHORE: The Customs Appellate Tribunal has set aside the impugned Order-in-Original (ONO) issued against the M/s Pak Elektron Limited (PEL) in an alleged tax evasion case involving Rs 192.018 million, which was filed by the Model Customs Collectorate Appraisement, Lahore.
According to the brief facts of the case, the Post Clearance Audit (PCA) while scrutinizing the data of M/s PEL for financial year 2007-08 observed that the company claimed benefits of SRO 565 (I)/2006 on the import of air conditioners.
Audit team observed that the concession only claimed by the importer-cum-manufacturer of air conditioners who had sustained house manufacturing facility on the house. After complete findings, the PCA made out contravention case accusing the importer of tax evasion amounting to Rs 192,018, 433.
After issuing of ONO, the appellant aggrieved from the decision and filed case in the Customs Appellate Tribunal on the grounds that the audit observation did not disclose the material facts and presented the arguments against the decision.
After hearing the arguments from both sides, Technical Member Nazim Saleem set aside the impugned ONO and also declared that the proceedings of directorate of PCA were against the basic principal of natural justice.
