KARACHI: Model Customs Collectorate of Exports has made the Contravention Report (CR) against M/s Fazal Sardar Textile Mills in the pretext of importing goods in excess of face value of license.
M/s Fazal Sardar Textile Mills, located near Sharafi Goth, Korangi Industrial Area was granted a License (PWL-14/2010) on 25-11-2010 under rule 3(2) of SRO 327(I)/2008 dated 29-03-2008 for the face value of Rs15 million. The license authorizes duty and taxes free import of plant, machinery, equipment, apparatus and capital goods for use solely within the limits of Export Oriented Unit and raw material using the licensed remained valid up to 08-11-2012.
As per the Contravention Report, M/s Fazal Textile was alleged to have imported 10 consignments of machinery/spare parts etc. in their export oriented unit during the period from November, 2010 to June, 2013 and availed exemption of duty/taxes amounting to Rs 86,304,000 i.e. Rs 71,304,000 above the face value of the license of Rs 15million.
The exemption of duty/taxes availed was in excess of the permissible amount of duty/taxes as mentioned in the license, which is violation of Rule 3(i) of Chapter XV of SRO 327(I)/2008 dated 29-03-2008 and the insurance policy furnished was also of the face value of the license on account of the liabilities involved on imported goods/balance stocks.
According to the Contravention Report made by MCC Exports, M/s Fazal Sardar Textile Mills is required to pay the amount of customs duty and taxes amounting to Rs 71,304,000 involved on the goods imported in excess of permissible limit of their license in terms of Section 32(3A) of the Customs Act, 1969 along with action under clauses (10A) & (14) of Section 156(1) of the Customs Act, 1969.
The Contravention Report has been moved by MCC Exports in the Office of the ADC, Adjudication-II and Show Cause Notice in this regard would be issued by the Office of the ADC, Adjudication-II within two to three days.
