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Home Breaking News

Demand notice issued lawfully against M/s ENI Pakistan, customs officials told SHC

byM.B. Rana
09/10/2020
in Breaking News, Karachi, Latest News
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KARACHI: Collector of Customs Exports and other customs officials have submitted their para wise comments in a constitutional petition filed by M/s ENI Pakistan Limited & others against issued demand notice for recovery of duty and taxes.

On 8 October 2020, a two-member bench heard the matter. During the hearing, assistant collector of customs-Exports submitted para wise comments on behalf of chairman Federal Board of Revenue (FBR), collector of customs exports, assistant collector of customs (HQ) Exports and denied to extent that demand notice was issued wrongfully, the petitioner are jointly participating in production sharing agreement for discovery and development of petroleum in an off-shore area designated by Government of Pakistan.

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He argued that as SRO 678(1)/2004 permit import of machinery/ equipment for oil exploration and production companies for use in drilling operations, the goods imported on temporary basis under the subject SRO the on completion of project is to be exported, however, the goods which are imported on permanent basis on payment of concessionary rate of duty and taxes cannot be exported without payment of duty and taxes leviable at the time of import, in this case payment was not made therefore, export of the same was not allowed.

He submitted that demand notice was issued under valid provisions of law by assistant collector of customs (HQ) exports as the goods were imported under SRO 678(1)/2004, availing concession on its import and it was attempted to be exported without payment of duty and taxes involved.

He stated that imported items are allowed to be sold to another company in the petroleum sector without payment of duty and taxes, otherwise it shall be sold through a public tender and duty shall be paid and condition of said SRO which deals with disposal of imported goods/ items, the same can be sold to any other petroleum company or scrap, junk etc, in case sold to petroleum company, no duty and taxes be recovered, however, disposal as scrap, junk, etc 10% duty will be recovered from the sales proceeds, in case the same is disposal of outside the county as export it will attract duty and taxes at standard rate which was leviable at the time of export.

 

 

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