MULTAN: The Customs Adjudication collector has reserved the decision against Reliance Commodities Mills (Private) Limited in the case of special federal excise tax evasion amount to Rs 25 million.
Reliance Commodities (Private) Limited is a leading commercial exporter and importer of different commodities, specially sugar and fertilisers.
Reliance exported sugarcane molasses under PCT Heading 1703 1000 without payment of special excise duty under DTRE scheme approval.
Reliance Commodities had exported the locally procured sugarcane molasses from different sugar mills but they had not paid the special federal excise duty under the DTRE scheme which amounted to almost Rs 25.9 million in three different DTRE scheme authorisations.
Reliance Commodities (Private) Limited was claiming that they had purchases raw material locally under the DTRE scheme authorisations, so they also had exemptions on the local purchase, but afterwards the the Federal Board of Revenue (FBR) clarified that the exemption of special federal excise duty was permissible on on purchase of duty-free input goods only .
The FBR clarified the issue vide letter number o 3(10) ST-L&P/2012 dated July 16, which inscribe that the local purchase was chargeable to federal excise duty.
Moreover, the amount is to be recovered from the Reliance Commodities as they have evaded special excise duty tax under Sub-section 2, 3A of Section 32 of the Customs Act, 1969, and punishable under clause 156 of the Customs Act, 1969. The special federal excise duty tax was charged at 1 percent payable on the locally procured sugarcane molasses.
