KARACHI: The Federal Board of Revenue (FBR) has decided to launch crackdown against 17 big companies taking undue advantage of SRO 565(I)/2006 and SRO 575(I)/2006 and are enjoying high rate of duty draw back (DDB)/rebate claim at the export stage.
The FBR through a letter have asked the Directorate General of Internal Audit-Customs to initiate audit of the cleared consignments of around 17 companies, which are taking inadmissible benefit of SRO 565(I)/2006 and SRO 575(I)/2006 on exporting those consignments and availing high rates of duty draw back.
The FBR through a letter have also asked the Export Collectorate to make a list of those importers-cum-exporters who are availing undue advantage of SRO 565(I)/2006 and 575(I)/2006 and send to Internal Audit-Customs for legal action.
The Internal Audit-Customs has received the list sent by the MCC-Export in which it found that 17 well reputed companies including M/s Atlas Honda, M/s Dollar Enterprises, M/s Lucky Cement Limited, M/s Al-Stationers and others were involved in taking inadmissible benefit of SRO565(I)/2006 and 575(I)/2006.
The Internal Audit-Customs would scrutinize the clearance data of those companies since the year 2006 and will send the audit report to the FBR.
“Around Rs 90 million of rebate claim/duty drawback have been availed by those companies altogether and the Export Collectorate had issued rebate claims amounting to Rs 90 million to those companies during nine years of time period”, sources added.
The FBR in the next phase of the investigation will decide whether to issue show-cause notices or demand notices against those companies.
It is pertinent to mention here that the concessionary SRO 565(I)/2006 and SRO 575(I)/2006 provide zero per cent duty on import of machinery and spare parts for Export Oriented Unit (EOU), while those companies had claimed and got high rates rebate claims after exporting the consignments.
