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Multan Customs detects tax evasion of Rs32.05m by Gulistan Textile Mills Ltd

Multan Customs detects tax evasion of Rs32.05m by Gulistan Textile Mills Ltd

MULTAN: The Customs Collectorate has detected tax evasion of Rs32.05 million against M/s Gulistan Textile Mills Limited.

According to details, M/s Gulistan Textile Mills Limited Ahmad Pur East Road Bahawalpur has imported 1239754 kilograms of polyester yarn  worth Rs195.813 million in eight import consignments  which were cleared from Multan Dry Port under the approval of DTRE.

Customs conducted stock taking of imported goods lying unconsumed in the DTRE premises after the expiry period of DTRE.  Multan Customs found that DTRE user has extended the utilization period of imported goods under DTRE without approval of competent authority by depositing amount of Rs12.49 million as duty and taxes on concessionary rates against 7 GDs out of eight GDs by availing benefit of SRO 494(i)/2013.

M/s Gulistan Textile Mills was also failed to satisfy Customs DTRE Cell on their examination, because there was not any stock available and it has been observed that all the imported goods against the GD No. DTRE -2000484 was misused without intimation to the competent authority. Therefore default surcharge, additional duty and taxes will also be recovered from the company.

But M/s Gulistan Textile Mills Ltd. DTRE user paid partial amount without any permission from regulatory authority by availing benefits of exemption from leviable surcharge which fall out of the ambit and scope of SRO 494(i)/2013. The DTRE user has not submitted any reconciliation statement about the import of polyester yarn to Multan Customs Collectorate in terms of rule 307-D of SRO 4509(I)/2001.

In this way the DTRE user contravened the provisions of section 19 & 219 of the Customs Act 1969 with DTRE rule,306, 307-A (I),307–E of SRO  450(I)/2001 punishable under clause-I &10 (A) of Section 156(I) of the Customs act,1969.Therefore duty and taxes amounting Rs.30.278 million is recoverable from the DTRE user.

Therefore Multan Customs formed contravention report against M/s Gulistan Textile Mills Ltd for misuse of DTRE of Rs.32.05 million and forwarded the contravention report to Customs Adjudication for further proceedings.