KARACHI: The Department Audit Committee (DAC) that met last week in respect of audit reports for the year 2010-2011 of MCC Appraisement West has settled several audit observations involving Rs200.346 million, which included non-recovery of adjudged dues of Rs10.711 million and blockade of revenue of Rs189.635 million due to non-disposal of confiscated vehicles.
During the meeting, MCC Appraisement West informed the DAC that certain recoveries had been made and verified by DAC. The Committee directed the MCC to recover the balance amount.
In response to the audit observation regarding short realization of revenue due to irregular exemption of Rs89.409, MCC Appraisement West informed that out of 41 cases, 35 cases have been identified where the necessary documentation have been produced, which indicate that the exemption given was allowable.
Of the remaining 6 cases, registration certifications of 3 cases as required by Audit have been acquired by the department, yet to be verified. For the remaining 3 cases the Collectorate directed the importer and clearing agent to submit the required documents. The DAC directed the MCC to pursue disposal of remaining cases within one month.
In response to observation regarding short-realization of withholding tax on imports of Rs0.678 million, the Collectorate informed that an amount of Rs0.578 million was not due and had been verified by Audit while the remaining had been recovered.
In response to the observation regarding non-recovery of differential customs dues in provisionally assessed cases, the MCC informed that an amount of Rs0.397 million had already been recovered. Further, an amount of Rs0.957 was not due and verified from Audit.
The DAC observed that ineffective internal controls were resulting in non-finalization of recovery and directed the Appraisement formation to expedite the recovery of the balance amount of Rs36.7 million and inform FBR within 30 days.
About non-disposal of detained vehicles, MCC informed that out of the total 79 lots involving Rs.126.167 million pertaining to MCC Appraisement West have been auctioned/released on payment of duty and taxes and an amount of Rs62.524 has been recovered and an amount of Rs63.641 million was not due and verified by Audit.
The meeting was attended by Ms. Seema Majid Member Accounting –FBR and syed Hamid Ali Chief (PAC) Matter-FBR from the Board’s side; Azhar Khalique Shar Director Audit (Customs & Petroleum) from the Audit side and Iftikhar Ahmed Janjua Deputy financial Advisor.
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