LAHORE: Directorate of Customs Post Clearance Audit (PCA) has detected misuse of large scale at large scale by M/s Pak Elektron Limited (PEL) and recovered over Rs 26 million on account of duty and taxes from the company by imposing a penalty of Rs 110,000, it is learnt.
As per documents available with Customs Today, PCA Lahore, through Directorate of Customs, Post Clearance Audit, Director Rauf Ahmad, came to know that M/s Pak Elektron Limited, 14-KM, Ferozpur Road, Lahore, obtained approval no. KCUS/47/29012016 dated 29.01.2016 from MCC Lahore, to import different parts of power transformers under Duties and Tax Remission for Export (DTRE) scheme but the duty free raw material had not been consumed in the production of exported goods. A audit team comprising Deputy Director Tauqeer Ahmad Dar, Audit Officer Arshad Malik and Audit Officer Muhammad Jamil was constituted under the supervision of Additioal Director Saadia Munib to conduct the audit of the said approval in terms of DTRE Rules enacted vide SRO No. 450(I)/2001 dated 18.06.2001.
The PCA observed that the user applied for DTRE facility on the basis of international tender. The application of the user was approved by the regulatory authority vide notification no. KCUS/47/29012016 dated 29.01.2016.
Accordingly, the user intended to import different parts of power transformers for manufacturing and export of power transformers, it was said.
The documents said that during scrutiny of record of approval no. KCUS/47/29012016 dated 29.01.2016 as provided by the DTRE user a number of discrepancies including unaccounted for un-exported goods were detected, excess material was imported without authorization, material was imported without authorization and reconciliation statement was late submitted.
Accordingly, the documents said that audit observation was served vide letter no: PCA/LHR/DTRE/10/2016/104/330 dated 16-03-2017, directing therein to provide written clarification of the aforementioned audit findings. The DTRE user was agreed to deposit the recoverable amount of duties and taxes amounting to Rs26,133,011/ (amounting to Rs808,993 is excess due to inadvertence) along with penalty of Rs. 110,000.
Finally the sources said that the PCA Lahore has recovered that evaded amount of duty and taxes by way of DTRE from the company.
