MULTAN: Collector Customs Adjudication issued Order-in-Original against M/s Dastagir Enterprises by imposing Rs150, 000 penalties and directed the Collectorate to recover duty taxes on unconsumed goods.
Sources told Customs Today that M/s Dastagir Enterprises was granted Export Oriented Unit (EOU) licensing no: 01/2009-EOU under SRO 237(I)/2008 on dated 29/03/2008 for import of fabric for export manufacturing. M/s Dastagir Enterprises initially given license up to 30/06/2010 and later it was renewed up to 30/06/2015.
During the above said period, M/s Dastagir Enterprises imported burn-out fabrics, embroidery machinery, chiffon fabrics, laces, beads, elastic, thread, zipper, parts of machinery, ladies suiting fabrics, scarves and other items for export of garments.
It was also observed that according to taxpayer online verification, M/s Dastagir Enterprises was blacklisted from 24/02/2002 and their sales tax registration was suspended and they attained export oriented unit license illegally. According to Rule 3 of SRO 327(I)/2008, sales tax registration is one of the mandatory with other requirements for obtaining EOU license.
In the absence of sales tax registration, the license was not authorized to import goods availing benefits under SRO 327(I)/2008.
M/s Dastagir Enterprises continued importing raw materials and machinery despite the fact that their sales tax registration was suspended in the start and the company was blacklisted.
During hearing in Customs Adjudication M/s Dastagir Enterprises provided substantial evidence that section 21(4) explains a registered person engaged in issuing fake or flying invoices, claiming fraudulent input tax of refunds does not physically exist or conduct actual business or committing any other fraudulent activity ,the concerned commissioner may block the refunds or input tax adjustments after recording reasons in writing and direct the commissioner for further investigation and take appropriate legal actions. Therefore it has nothing to do with exporters operating under EOU license.
There was no order for blacklisting of license at the time of awarding EOU license therefore company was granted EOU license.
M/s Dastagir Enterprises Multan got renewed their EOU license for further period from 1/11/2013 to 30/06/2015 despite pending action under the acts and imported the machinery and raw materials illegally and cleared five different GDs.
Their analysis certificate also revealed in trial that they allowed importing fabrics only whereas they imported machinery and their parts.
Collector Customs Adjudication Asif Abbas Khan after examining all facts and evidences of case and found that demand of Rs6.038 million along with multiple fines and additional taxes under provisions of Customs act 1969, Sales act 1897 is not justified.
Collector Customs Adjudication issued Order-in-Original no.12 and directed Multan Customs Collectorate to determine local sales and unconsumed quantity of input goods by M/s Dastagir Enterprises for late exports and recover leviable duty taxes under sales act 1990 and Income Tax Ordinance 2001.
