KARACHI: Sindh High Court has rejected the constitution petition filed by the management of Bahria Icon Tower against the notice issued by the Federal Board of Revenue.
The Input-Output Co-efficient Organization (IOCO) of FBR has issued notice to the management of Bahria Icon Tower against the violation of Statutory Regulatory Order (SRO) 575(1)/2006 of the concessionary/exemption regime.
The management of Bahria Icon Tower was interested to take wrong benefit of the SRO. In reply the FBR through a letter constrained the Bahria Icon Tower management to do so.
The SRO 575(1)/2006 applied on the machinery, equipment and other items required for setting up, up-gradation and expansion of hotels (3 stars and above), tourism, sporting and other recreation services related projects as approved by the Ministry of Tourism.
It further stated that the tourism departments of provincial governments, Gilgit-Baltistan, FATA and department of tourist services of Capital Administration and Development Division shall approve the project. The project requirement shall, however, be determined by the Directorate of IOCO on the format prescribed as Annex-B to this notification.
The authorized officer of IOCO shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under Section 155D of the Customs Act, 1969 (IV of 1969).
Locally manufactured goods of description as specified in column (2) and pre-fabricated building can also be imported upon fulfillment of the following conditions: the exception shall be available on one time basis for setting up of new projects and expansion of existing ones, and shall not be available on the spare parts; only those importers shall be eligible to avail the aforesaid exception whose cases are recommended and forwarded by IOCO to FBR; and the goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs-duties and taxes at statutory rates be leviable at the time of import.
Breach of this condition shall be construed as a criminal offence under the Customs Act, 1969; the importer shall furnish an undertaking in such form as may be prescribed by the Collector of Customs covering the amount of customs duties and taxes at the time of clearance of goods and shall declare that the goods shall be used or installed in the approved project; and the undertaking shall be discharged subsequently on production of a certificate of installation or consumption as per Annex-D to this notification within one year of the date of importation of the goods from the Assistant Collector or Deputy Collector of Customs within whose jurisdiction the project is located to the effect that the goods have been duly installed or consumed, as the case may be.
