KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has served an audit observation on M/s Sui Northern Gas Pipelines Limited (SNGPL) advising the gas utility company to deposit Rs388.786 million, as this amount was evaded on import of gas meters through claiming inadmissible benefit of concessionary SROs.
According to the details, scrutiny of import data of Sui Northern Gas Pipelines Limited found that they imported various consignments of Domestic Gas Meters and cleared the same from MCC Appraisment (West), MCC Appraisment (East) and MCC (PMBQ) through their Clearing Agents namely M/s Muhammad Amin Muhammad Moqeem, Clearing & Forwarding Agents and M/s Urooj Agencies availing inadmissible exemption/concession under SRO 678(I)/2004.
The conditions with reference to aforesaid SRO clearly stipulate that only such goods shall be entitled to the exemption by a company other than an E&P company, for its own use or its contractors, sub-contractors and service companies for its projects of oil and gas exploration and production, refinery, oil and gas pipeline, liquefied petroleum gas (LPG), compressed natural gas (CNG), Liquefied Natural Gas (LNG) petroleum terminals, energy conservation, environment and safety controls.
Further, the imported goods also fall within the ambit of CGO No. 11/2007 being locally manufactured.
M/s Sui Northern Gas Pipelines Limited by availing inadmissible exemption/concession under SRO 678(I)/2004 evaded/short paid Custom Duty of Rs306.505 million, Sales Tax Rs52.163 million, Additional Sales Tax Rs9.195million and Income Tax Rs20.922 million totaling Rs388.786 million.
M/s SNGPL evaded a total of Rs28.95 million on import of domestic gas meters through MSS Appraisement East; Rs186.556 million on imports through MSS Appraisement West and Rs173.258 million on import of gas meters through MCC Port Qasim.