KARACHI: MCC Port Qasim after hectic efforts has recovered Rs1.325 billion from M/s Engro Elengy Terminal (pvt) Ltd, which was outstanding against them as customs duty.

According to the details, M/s. Engro Elengy Terminal (Pvt) Ltd., imported one unit vessel namely “Exquisite” liquefied gas carrier RV equipped with Re-Gasification Plant (Floating storage and re-gasification unit-FSRU) for converting Liquefied Natural Gas to Natural Gas.

Subsequently they filed Goods Declaration through their Clearing Agent M/s. Ryan Agencies (Pvt.) Ltd., whereby the customs value of the subject FSRU was declared as $255.456 million equal to Rs26.502 billion while claiming exemption from whole of Customs Duty and Sales tax against corporate guarantee under SRO 678(1)/2004.

Then Collector Suraya Ahmed Butt Additional Collector Saeed Akram, Deputy Collector Falik Sher and Principal Appraiser detected that the claimed exemption was inadmissible. Therefore, the exemption claim was denied and the assessment of the subject vessel was made by the appropriate officer as per declared value of the vessel while allowing exemption of Customs Duty in excess of 5.0 percent and whole of Sales Tax under SRO 678(I)/2004 as amended vide SRO 337(1)/2015.

Being aggrieved, the M/s Engro Elengy filed Suit with the Sindh High Court, Karachi. Consequently the Sindh High Court after hearing of the parties has announced its judgment holding that M/s Engro Elengy is not entitled for complete exemption under the SRO and is liable to pay Customs Duty at 5.0 percent.

Regarding withholding tax, the Court has remanded the matter to concerned Income Tax authorities to re-consider and decide the case within 30 days.

Collector Port Qasim Moazzam Jah formed a committee headed by Additional Collector Mohammad Tahir and comprising Deputy Collector Tahir Abbas and PA Tariq Aziz for recovery of the amount. Accordingly, hectic efforts were made by the Collectorate for recovery of the duty in terms of the orders of the Sindh High court.

In this regard, the Collectorate also approached the top management of the importer and consequently the M/s Engro Elengy Terminal (Pvt.) Karachi had paid aforesaid assessed Customs Duty amounting to Rs1.325 billion.

As regards the payment of withholding tax, the liability relating thereto would be communicated to the importer after the finalization of the issue by the concerned Income Tax authorities in accordance with the decision of the Sindh High Court, Karachi.