Friday , August 23 2019
Breaking News
Home / Latest News / Multan Adjudication issues ONO against M/s Carolina Fabrics (Pvt) Ltd
Multan Adjudication issues ONO against M/s Carolina Fabrics (Pvt) Ltd

Multan Adjudication issues ONO against M/s Carolina Fabrics (Pvt) Ltd

MULTAN: Collector Customs Adjudication has issued Order-in-Original against M/s Carolina Fabrics (Pvt) Limited and imposed penalty of Rs500,000 along with demanded amount of Rs4.48 million under head of various taxes.

M/s Carolina Fabrics (PVT) Limited involved in misusing of SRO 326 and 327 (I) 2018 dated 29.03.2008 under the export-oriented license no: 02/EOU/2014. M/s Carolina Fabrics (Pvt) Limited has imported duty-free raw material of 20759 kilograms of finished grey fabrics under the export-oriented scheme.

It was observed during hearing that M/s Carolina Fabrics (Pvt) Limited has failed to consume the said imported quantity and declared closing balance as 20759 kilograms after the expiry of utilization period of two years.

According to Rule -12 of SRO 327(I)/2008 dated 29.03.2008 the input goods acquired under these rules shall be utilized in the built-up and export of output goods within two years from the date of their import. Non-export of imported materials resulted into non-realization of government revenue. Therefore duty and taxes of the unconsumed quantity would be recovered from licensee M/s Carolina Fabrics (PVT) Limited amounting to Rs4.48 million under the head of customs duty, regulatory duty, sales taxes, withholding tax and others.

M/s Carolina Fabrics (PVT) Limited contravened section 19 & 219 of the Customs Act 1969, section 32 (3A) of the Customs Act 1969 with rule 12 of SRO 327(I)/2008 dated 29.03.2008 punishable under clause –I & 14 Section 33 and 34 of the Sales tax act 1990 duty and taxes amounting to Rs.4.48 million along with additional duty, additional taxes and penalties are recoverable from licensee. Thus charges enumerated in the show cause notice clearly established after examination of record against M/s Carolina Fabrics (Pvt) Limited.

Therefore Collector Dr. Muhammad Adnan Akram has directed M/s Carolina Fabrics (PVT) Limited to pay the demanded amount of Rs4.48 million along with surcharge as required under Rule 14(6) of the SRO 327(I)/2008 and penalty of Rs500,000 has been imposed on the accused.