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Collector Adjudication issues show cause to M/s Telenor for allegedly evading tax of Rs 16.83m

Collector Adjudication issues show cause to M/s Telenor for allegedly evading tax of Rs 16.83m

ISLAMABAD: Collector Customs Adjudication Ihsan Ali Shah has issued a show cause notice to M/s Telenor Pakistan (Private) Limited under section 180 of the Customs Act 1969, calling upon the company to why the evaded amount of Rs 16.83 million should not be recovered from them and why a penal action should not be taken against them under section 156 (1), (14) of the Customs Act, 1969.

It was reported by the Principle Appraiser AFU, BBI Airport that the Directorate General Audit and Petroleum, during the scrutiny of record of AFU Imports for the year 2012-13, observed that M/s Telenor Pakistan (Private) Limited imported 595 consignments consisting of repaired plant, machinery, equipment, apparatus and parts and cleared the same under benefit of sixth schedule to the Sales Tax Act, 1990.

The benefit was inadmissible because the customs duty was charged at statutory rate under respective PCT headings. The benefit of sixth schedules was admissible only if condition for zero rating of customs duty had been fulfilled and the duty had been charged at the rate of zero percent. This inadmissible benefit resulted in non realization of government revenue amounting to Rs16.83 million.

A demand notice was issued to M/s Telenor Pakistan Pvt Ltd, Islamabad for payment of the said amount of duty and taxes but they failed to pay the demanded amount. Accordingly, they were alleged to have contravened the provisions of section 32 (3) (3) A of the Customs Act, 1969.

AFU submitted the contravention report seeking recovery of non paid government revenue and legal action against the M/s Telenor Pakistan for violation of the provisions of customs law.