KARACHI: Collectorate of Customs Adjudication has imposed penalty and surcharge worth Rs100 million on M/s Fairdeal Textiles Pvt Ltd.
The order, passed by Collector Abid Hakro, culminates in a total recoverable amount exceeding Rs333 million and marks a robust response to serious irregularities detected in import operations under the EFS (Export Facilitation Scheme).
M/s Fairdeal Textile Private Limited was found to be exploiting its “manufacturing status” to claim benefits of concessionary rates of duty/taxes, a misuse that pointed to a larger issue of governance within the sector.
During the physical verification process, the exempt fabrics imported under the EFS scheme, which were supposed to be manufactured and exported, were nowhere to be found, hinting it a deliberate attempt to defraud the national exchequer.
Sources said that Directorate of Post Clearance Audit (PCA) South had lodged an FIR upon detecting serious discrepancies. Investigations revealed alarming signs of operational dysfunction at M/s Fairdeal Textiles’ manufacturing site, which was found closed for a prolonged period.
This closure was further confirmed in the nill utility bills and absence of labor employment, as verified from tax returns, and verifications made from KESC, EOBI and SESSI departments.
After providing M/s Fairdeal Textiles with opportunity for defense, the order passed by Abid Hakro has thrust the company into the limelight. The firm now faces strenuous recovery proceedings for the realization of the hefty amounts of taxes, surcharges, and penalties, a reminder of the legal and financial repercussions that stem from such fraudulent activities.
