MULTAN: The Multan Customs Collectorate has detected tax evasion of Rs1.597million by M/s Monnoowal Textile Mills Limited.
Precise facts of the case are that M/s Monnoowal Textile Mills Limited 3-Montgomery Road Lahore was granted Duty Tax Remission on Export (DTRE) for import of raw cotton. M/s Monnoowal Textile was approved quantity of 1,029,485 kilogram by the competent authority under DTRE. Alleged importer imported raw cotton of 914,950 kilogram of worth Rs145.93 million out of 1,029,485 kilogram.
DTRE user consumed the imported goods for the manufacturing of furnished goods (cotton carded and combed yarn). It was observed during audit that DTRE user exported has consumed 876,857 kilograms out of 914,650 kilogram and failed to manufacture and export the remaining quantity of 37,793 kilograms.
Multan Customs has formed contravention report against M/s Monnoowal Textile Mills Ltd. for the recoverable duty taxes of Rs1.597 million under & 219 of the Customs Act 1969, section 32 (3A) with DTRE Rules envisaged under SRO 450(I)/2001 punishable under clause- I & 14 of section 156(I) of the Customs Act 1969, section 3,6 & 11 of the Sales Tax Act 1990 punishable under section 33 and 34 of the Sales Tax Act 1990.Section 162 of Income Tax Ordinance 2001.
The Customs Collectorate Multan has forwarded the contravention report to Customs Adjudication for the recovery of duty and taxes.
