MULTAN: Model Customs Collectorate MCC Multan has detected special federal excise tax evasion of worth Rs 25.9 million against Reliance Commodities Mills (Private) Limited during the audit of customs.
Reliance Commodities (Private) Limited is a leading commercial exporter and importer of different commodities specially sugar and fertilizers. Reliance exported sugar cane molasses under PCT Heading 1703 1000 without payment of special excise duty under DTRE scheme approval.
Directorate General of Audit Customs has pointed out the fact during the audit that Reliance Commodities exported the locally procured sugar cane molasses from different sugar mills under DTRE scheme approval.
Reliance Commodities had not paid the special federal excise duty under DTRE scheme which amounted almost worth Rs 25.9 million in three different DTRE scheme authorizations.
This matter was raised with the Federal Board of Revenue (FBR) for clarification that whether the exemption of special federal excise duty was permissible on acquisitions of duty free input goods or not.
FBR has clarified the issue with vide letter no. 3(10) ST-L&P/2012 dated 16th July which inscribe that the local purchase is 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 customs Act 1969.
There were three different export quantities of the molasses of sugar cane with volume of 116,615 metric tons worth Rs 8.6 billion, 217814 metric tons with value of Rs 5.92 billion and 199,691 metric tons of cost Rs 11.82793124 billion. Net amount of molasses of sugar cane becomes almost 26.39 billion.
Reliance Commodities have paid the special federal duty tax of worth Rs 492,781 in the export of 217814 metric tons of sugar cane molasses.
The special federal excise duty tax was charge at 1 % payable on the locally procured sugar cane molasses. The difference in the payment of special federal excise duty becomes almost 25.9 million. The contravention has been send to the Customs Adjudication for the collection of special federal excise duty of export.