KARACHI: MCC Appraisement East has asked the Departmental Audit Committee (DAC) to assign a verification team to confirm recovery of Rs25.7 million in 12 cases where the adjudication was issued and recovery had not been affected.

The Departmental Audit Committee (DAC) had advised MCC Appraisement East to get the verification with the Audit regarding recovery of Rs25.7 million.

The DAC previously had observed that a number of cases were adjudged on account of under assessment of the goods by certain importers. During the process of adjudication, fine and penalty of Rs88.081 million was imposed on the importers.

DAC had asked MCC Appraisement East that either the position may kindly be clarified or amount of Rs88.081 million may be recovered under intimation to audit.

In response of this observation, MCC Appraisement East informed that recovery had been affected in 12 cases involving Rs25.753 million requesting that the subject audit observation might be dropped.

It further informed that 28 cases relating to M/s. Leather Cotex and recovery proceedings had been initiated. Proceedings   for attachment of property of defaulter have been initiated and attachment of bank accounts has been made as well.

Moreover, two cases regarding M/s Zenith Chemical Industries had been decided by Collector Appeals against department and the appeal has been filed against that order of the Collector (Appeal) in Appellate Tribunal, Karachi.

It maintained that recovery proceedings have been initiated in thirteen cases.