FAISALABAD: The Customs Duty and Tax Remission on Export (DTRE) branch has detected tax evasion and short payment of duty and taxes amounting to Rs 1.585 million allegedly by M/s JK Spinning Mills Limited and imposed a penalty on the said company.
As per analysis certificate of the input good raw cotton, to be consumed for manufacturing of cotton grey fabric (finished item), meant for the export with wastage of 12 percent. However, the company consumed 100 percent as net and 0 as wastage. This resulted into excess consumption of raw material causing non-realization of government revenue amounting to Rs 1.585 million. The licensee in this way contravened the provisions of rules 351, and 352 of warehousing rules issued under SRO 450(1)/2001.
During scrutiny of the record, it was found that the company was granted DTRE approval for a period of fiscal year 2012-13 according to prevailing DTRE rules of that period. So, the company availed undue benefits and concessions of the rules causing loss to national kitty.
The audit team comprising Assistant Collector Muhammad Idrees Qureshi, Superintendent Dilawar Hussain, Inspector Muhammad Afzal Awan and Muhammad Yousaf detected tax evasion.
The DTRE branch has directed the management of M/s J.K Spinning Mills Limited Sheikhpura to clear outstanding amount otherwise stern action will be taken against the company.
The contravention report is forwarded to Customs Adjudication additional collector for further legal action.
