KARACHI: The Customs Court sought progress report against owner of M/s Margalla Industries booked for committing tax fraud by claiming illegal input/ obtaining sales tax refund on strength of fake and flying invoices and false zero rated supplies without having any manufacturing facility.
On 10 November 2020, investigation officer of II&P Cell, Zone-I, Inland Revenue submitted first information report (FIR) and stated that during the investigation, it was found that accused managed to get registered business with name of M/s Margalla Industries and declared principal business activity as other persons service activities, the Directorate has conducted discreet inquiry about the genuineness of the credit claim and it was observed that during the course of scrutiny of monthly sales tax returns and refund claimed/ adjusted for November 2011 to July 2012 following discrepancies have been observed in the data available at official web portal of FBR to the said case an aggregated amount of Rs288.269 million credited against fake/ flying invoices and claiming illegal put tax amounting to Rs72.943 million against the zero rated imports of valuing Rs3.963 million vide GD No 9940 dated Jan 23, 2012 has been claimed/ processed to the subject unit which is registered as other personal service activities.
He submits that the accused person evaded sales tax amounting to Rs 288.269 million (final amount to be ascertained during investigation), after the hearing, court took FIR into court record and directed investigation officer to complete investigation and submit progress report for next date of hearing.
According to the prosecution, the case was registered for violation of section 2(9), 2 (16), 2 (37), 3, 6, 7, 8, 22, 23, 26, 37 and 73 of the sales tax action 1990 and other related laws.
