MULTAN: The Model of Customs Collectorate has served notices on Fatima Fertilizer Company to deposit their arrears amounting to Rs 270.041 million.
The Multan Customs issued notices to the company for payment of duty/taxes detected by Post Clearance Audit (PCA) while scrutinising data of the company. It is pertinent to mention here that the PCA formed three contraventions against the company.
The Fatima Fertilizer imported 22 consignments of stainless steel pipes, seamless steel pipes, seamless carbon steel pipes, carbon steel heat exchange, carbon steel pipes, stainless steel fined tubes, PVC cable flexible, frequency cable, power cable, flat cable, medium duties steel racks, light duties steel rack etc. during the year 2011, 2012 and 2013 and claimed benefit of SRO 575 (I)/2006.
During the audit, it was revealed that the goods did not cover the definition of plant, machinery, equipment, spares and accessories. These imported items were found consumables and entitled to benefit claimed by importer under SRO 575 (I)/2006. The company was required to pay statutory duty on these imported items.
After detecting discrepancies, the PCA sent case to Customs Adjudication where it was proved that importer tried to hide facts of the goods in order to evaded duty/taxes. The importer failed to defend allegations provided by the PCA; therefore, issued show cause notices stand established.
Therefore, Fatima Fertiliser was directed to immediately deposit the demanded amount of duties and taxes along with additional duty and default surcharge and actual amount of the import consignments under the relevant provisions of Customs Act, 1969 and Sales Tax Act, 1990.
In addition, the Customs Adjudication imposed a fine on importer equivalent value of the import goods under clause 10 A and 14 of Section 156 (I) of the Customs Act, 1969 and five percent to the equivalent amount of sales tax recoverable under Section 33(5) of the Sales Tax Act, 1990.
The Multan Customs has issued recovery notices to Fatima Fertilizer Company Limited for the payment of arrears in the direction of issued ONO by Customs Adjudication Collector Raja Tahir Majeed.
