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Multan Customs detects tax evasion of Rs20.243m by M/s Fatima Enterprises Ltd

Multan Customs detects tax evasion of Rs20.243m by M/s Fatima Enterprises Ltd

MULTAN: The Customs Collectorate has unearthed the tax evasion of Rs.20.243 million by M/s Fatima Enterprises Limited during the audit.

Sources told Customs Today that Multan Customs Collectorate has given Duty Tax Re-Emission (DTRE) approval to M/s Fatima Enterprises Ltd (Textile Unit-2) in terms of Rule 298 of SRO-450(I)/2001. M/s Fatima Enterprises Limited has applied for the quantity of 6500,000 kilograms of different type of fabrics un-bleached for import of input goods under Duty Tax Re-Emission (DTRE) approval.

The DTRE user obtained approval for import of unbleached grey fabric for subsequent export after processing after processing into bleached , dyed and printing fabric. During the scrutiny of the manufacture of imported and exported goods it was revealed that manufacturing of exported fabric does not match with the construction of exported fabric. It was alleged that the exported fabric is totally different from the imported fabric which means the DTRE user has misused the goods imported without duty and taxes by selling the same in the local markets.

It was also revealed that M/s Fatima Enterprises has exported low price and inferior quality locally manufactured fabrics in the garb of imported goods which resulted into short realization of foreign remittances  amounting to Rs194,136708. Importer M/s Fatima Enterprises was bound to maintain and keep the DTRE record separately as per rule 307 C of DTRE Rules but audit teams has observed during the scrutiny of the record that most of the shipping bills are incomplete showing export of goods through WeBOC which is also violation of rule 306 of DTRE Rules, 2001.

It was also alleged that M/s Fatima Enterprises Limited unlawfully obtained DTRE approval in the absence of manufacturing facility and grossly misused the said facility. Therefore duty and taxes payable at the time of import are recoverable from the DTRE user beside imposition of fine and penalty for violation of DTRE Rules.

However, contravention report  was finalized against M/s Fatima Enterprises Limited for duties and tax evasion of Rs20.243 million  under section of 19& 219 of the Customs act,1969 with  DTRE sub rule 297,298,300(3),306,307A,307E,307E(4),307G(2) of SRO.450 (I)/2001 section25 and section 32 recoverable under section 202 of the Customs Act 1969.