Misuse of SRO. 1125(I)/2011: Customs Intelligence detects evasion of Rs31.43 million

KARACHI: Customs Intelligence & Investigation Karachi has booked M/s M.A. Textiles for evasion of duty and taxes worth Rs31.43 million on import of polyester/viscose textured yarn through claim undue benefit if SRO 1125(I)/2011.[the_ad id=”31605″]Information was received through Director Karachi Irfan Jawaid that M/s. M.A. Textiles having manufacturing address of A-25, Sector 7D/3 North Karachi on lqra University Road, Karachi, are involved in the clearance of imported cotton blended fabric, polyester fabric, ladies shirting / suiting fabric / cotton embroidery, polyester embroidery, net embroidery, polyester pile / velvet fabric, garment accessories lace, tags by claiming undue benefit of exemption under SRO-1125(1)/2011.

Acting upon the aforesaid information, a team was deputed to ascertain the physical existence and business activity of the importer, registered with sales tax authority as “Manufacturer / Other textiles/ Manufacturer of other textile” and availability of stock of unit.

During physical verification, although the registered person was found existent at declared address, but no imported raw materials/ stock was found at the premises and the capacity of the machinery found installed does not commensurate with the quantum of imports made by the unit.

Moreover, neither the machinery was in working nor any labour / worker was available at the time of visit. One Yousuf Sherazi was available, who disclosed that they would be doing the business of stock lots and other CMT work in future.

Furthermore, one electric meter was installed at the premises having average monthly utility expenses of Rs.2,000/month only.

Subsequently, a consignment of the importer, which was cleared through MCC Appraisement West availing undue benefit of SRO 1125(I)/2011, was blocked online. Scrutiny of the  relevant GD revealed that the importer M/s M.A. Textiles had wrongly claimed the concessions, and the evaded taxes worked out to be Rs3.108 million.

Past imports of the importer were also scrutinized which revealed that the importer had previously cleared 13 such consignments in January and February 2019 from MCC Appraisement West. Evaded taxes on these past consignments were calculated at Rs28.329 million. total recoverable amount comes to Rs31.43 million.

An FIR has been lodged and investigations are underway. Efforts are also been made to arrest the accused while role of other associates in crime will determined during investigation.

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