LAHORE: The Customs Appellate Tribunal has dismissed an appeal filed by M/s Surriya Textile Mills private limited against Additional Collector of Customs, Collectorate of Customs (Adjudication), Allama Iqbal International Lahore.
Imran Tariq, Member Technical Bench-II, declared in the judgement that in the proceeding tribunal finds no merit in appeal which is therefore not accepted. The penalty of Rs15000 imposed on the appellant and his clearing agent is waived off. Tribunal further passed the order that the respondent department should recover the default amount of tax along default surcharge appreciated under the section of the Sales Tax Act-1990 and Income Tax Ordinance-2001.
As per brief history of the case, superintendent of MCC preventive LFU, Wagha Lahore, endorsed that appellant imported Indian raw cotton and claimed the benefits of the Sales Tax SRO 1125(I)/2011 for the payment of Sales Tax @ 2 percent instead of 16 percent.
During the course of audit, customs officers observed that consignment is liable to the payment of Sales Tax @ 16 percent and importer wrongly claimed the benefits of SRO 1125, so importer is not entitled to the benefits of SRO 1125/(I)2001.
Customs’ Audit Wing imposed Rs01.2million duties and taxes which is Rs01.2million Sales Tax and Rs11290 Income Tax on the importer.
After the show cause notice, customs adjudication passed the Order-in-Original for the recovery of taxes and duties imposed by the audit wing and also imposed a nominal penalty of Rs15000 on the importer and his clearing agent.
Appellant aggrieved from the ONO and filed the case before the Customs Appellate Tribunal on the grounds that the Order-in-Original is not under the law and claimed that the SRO allows the importer for the payment of 2 percent instead of 16 percent. The departmental representative denied all the allegations.
After hearing the arguments, Customs Appellate rejected the appeal and waived penalty only.
