MULTAN: Customs detected duties and tax evasion of Rs.7.350 million during audit against M/s Masood Textile Mills Ltd.
Sources told Customs Today that M/s Masood Textile Mills Ltd was granted license for import of PC fabrics and 100% cotton yarn free from payment of duty and taxes under benefit of SRO 450(i)/2001 for the consumption in manufacturing of garments for exports.
According to Rule 350(4) of SRO the period of utilization input goods should not exceeded two years from the date of in-bonding of input goods.
It was observed during the audit of record that M/s Masood Textile Mills Ltd was failed to consume the duty free imported input goods within prescribed time period against the goods declarations.
Resultantly, taxable duty and taxes of Rs.7.350 million on input duty free goods for unaccounted quantity of output goods are required to be recovered from M/s Masood Textile Mills Ltd.
During audit it was also revealed that licensee was required to submit monthly statement but he was failed to comply with the aforesaid rule.
In the light of foregoing facts , audit teams found that the licensee has misused the facility of SRO 450(i)/2001 which caused loss government revenue to the tune of Rs.7.350 million .The licensee has violated the terms and conditions of the licensing Rules and has failed to discharge his legal obligations and contravened the provisions of section 18 ,19 & 32 of the Customs Act 1969 punishable under section 156(I) (10A)(14) of the Customs act 1969 with rule 343,350(4),352(2) of SRO450(i)/2001 with section 3 & 6 of the Sales tax act ,1990 and section 148 of the income tax ordinance 2001.
Audit team has formed contravention against M/s Masood Textile Mills Ltd and forwarded to Customs Adjudication for legal trial.