KARACHI: Customs, Collectorate of Adjudication-II has served four show-cause notices on M/s Fatima Fertilizer Company Limited Lahore for taking illegal benefits under SRO 575(I)/2006, causing serious financial losses to the national exchequer, it is learnt.
The scrutiny of the import data revealed that Fatima Fertilizer Company imported consignments of stainless steel piping, cables, scaffolding, ladder, tube etc through MCC Appraisement (East), Custom House and illegally availed the benefit of inadmissible exemption of custom duty as in excess of 5 percent under Sr No 20 & 21 of SRO 575(I)/2006 dated 5.6.2006.
Therefore, an amount of Rs 31.204 million was short paid on account of custom duty, withholding tax and sales tax.
Hence, the importer has violated the provisions of Section 32(1)(2) and (3A) of the Customs Act, 1969, punishable under clauses (1), (14) of section 156(1) of the Customs Act, 1969 read with section 33 of the Sales Tax Act 1990, chapter X of the Sales Tax Special procedure Rules 2007 (special procedures for payment of sales tax by the importers ) and section 148 of Income Tax Ordinance 2001.
When contacted, Director PCA Karachi told Customs Today that the contravention reports had been forwarded herewith for initiation of adjudication proceeding.
Now, the Customs Adjudication-II has issued show-cause notices to the importers or appear before the Collector Adjudication-II Chaudhry Javed and present their view point.