KARACHI: Model Customs Collectorate of Exports has issued a Contravention Report (CR) against M/s Eastern Garments (Pvt) Limited for violation of Section 19 and 32(3A) of the Customs Act, 1969 read with Rule 3(1) (f)(i) and (j) of SRO327(I)/2008 which included tax evasion of Rs 96,582,274 including Rs 92,881,179 in share of customs duty and taxes and Rs 3,701,095 in excess of imported goods against permissible limit of the face value of license.
M/s Eastern Garments (Pvt) Limited, imported machinery/spare parts in their Export Oriented Unit during the period from 7-12-2009 to 14-12-2011 and availed exemption of customs duty/taxes amounting to Rs 20,476,761 above the face value of the license. Thereafter in the subsequent period with effect from 15-12-2011 to 31-12-2013, under the license further imported machinery/spare parts and raw material valuing Rs 246,320,523 and availed exemption of duties/taxes amounting to Rs 92,404,418.
The Contravention Report stated total exemption availed was Rs 112,881,179 in excess of the permissible limit of exemption of duty and taxes of Rs 20 million as endorsed on the license as face value, which was the violation of Rule 3(1)(f)(i)&(j) of SRO327(i)/2008.
Consequently, the insurance policy furnished equal to the face value of the license also fell short on the account of the liabilities involved on imported goods/balance stocks.
According to the Contravention Report, M/s Eastern Garments (Pvt) Limited have also imported Neck Tape (5807.1030) and Sublimation Paper (4821.9000) without authorization or without getting them included/endorsed on the license covering the duty/taxes amounting to Rs 3,701,095.
The Contravention Report has been forwarded to the office of the Additional Collector of the Customs Collectorate of Adjudication-II.
