Tuesday , January 22 2019
Breaking News
Home / Latest News / Multan Customs detects tax evasion of Rs 4.48 million against M/s Carolina Fabrics (PVT) Limited
Multan Customs detects tax evasion of Rs 4.48 million against M/s Carolina Fabrics (PVT) Limited

Multan Customs detects tax evasion of Rs 4.48 million against M/s Carolina Fabrics (PVT) Limited

MULTAN: Customs Collectorate detected tax evasion of Rs4.48 million under the head of various taxes against M/s Carolina Fabrics (PVT) Limited.

Sources told Customs Today that 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 imported duty-free raw material of 20759 kilograms of finished grey fabrics under the export-oriented scheme.

It was observed that licensee has failed to consume the said imported quantity and declared closing balance as 20759 kilograms after the expiry of the 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 in the non-realization of government revenue. Therefore duty and taxes of the unconsumed quantity to be recovered from licensee M/s Carolina Fabrics (Pvt) Limited amounting to Rs4.48 million under the head of customs duty, regulatory duty, sales tax, 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.

Multan Customs formed contravention against M/s Carolina Fabrics (PVT) Limited and forwarded the case to the Customs Adjudication for misuse of an export-oriented scheme to recover duty and taxes.