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Multan Customs detects tax evasion of Rs6.038m against M/s Dastagir Enterprises

Multan Customs detects tax evasion of Rs6.038m against M/s Dastagir Enterprises

MULTAN: Collectorate of Customs detected tax evasion of Rs6.038 million against M/s Dastagir Enterprises during audit process.

Sources told Customs Today, that M/s Dastagir Enterprises Multan was granted Export Oriented Unit (EOU) license no: 01/2009-EOU under SRO 237(I)/2008 on dated 29/03/2008 for import of fabric for export manufacturing. M/s Dastagir Enterprises was initially given license up to 30/06/2010 and later it was renewed up to 30/06/2015.

During the said period, M/s Dastagir Enterprises imported burn-out fabrics, embroidery machinery, chiffon fabrics, laces, beads, elastic, thread, zipper, parts of machinery, ladies suiting fabrics, scarves and other items for export of garments.

During the course of audit, it was observed that according to taxpayer online verification, M/s Dastagir Enterprises was blacklisted from 24/02/2002 and their sales tax registration was suspended.

According to Rule 3 of SRO 327(I)/2008, sales tax registration is one of the mandatory with other requirements for obtaining EOU license. In the absence of sales tax registration, the license was not authorized to import goods availing benefits under SRO 327(I)/2008.

Contrary to this, M/s Dastagir Enterprises continued importing raw materials and machinery despite the fact that their sales tax registration was suspended in the start and the company was blacklisted.

M/s Dastagir Enterprises Multan got renewed their EOU license for further period from 1/11/2013 to 30/06/2015 despite pending action under the acts and imported the machinery and raw materials illegally and cleared five different GDs.

It was also revealed that during audit owner Muhammad Asif after blacklisting of sales tax registration illegally imported a consignment of mash fabric and embroidery machinery under EOU bond license. Their analysis certificate also revealed that they allowed importing fabrics only whereas they imported machinery and their parts.

In this way the EOU license contravened section 19 & 219 of the Customs Act 1969 with rule Section 32 (A) along with 3, 9, 10(3) & 14(5) of SRO327 (I)/ 2008 punishable under clause –I & 14 of Section 156(I) of the Customs Act 1969 Section 3.6,11 of the Sales Tax Act 1990 punishable under Section 33 & 34 of the Sales Tax Act 1990.

Assistant Collector found that M/s Dastagir Enterprises evaded duty and tax amounting to Rs6.038 million along with additional duty and taxes. Multan Customs formed a contravention report no.02/2018 against M/s Dastagir Enterprises Multan and forwarded case to Customs Adjudication for further proceedings.