KARACHI: Collector Adjudication Farrukh Sajjad has imposed significant penalties on steel importers, their Customs agent and officials of Engineering Development Board (EDB) for availing undue benefit of concessionary rate of duty taxes vide SRO 655(I)/2006.
Collector Adjudication has ordered recovery of Rs25.45 million of evaded duty and taxes from importer M/s A-One Steel. A personal penalty of Rs62.04 million, equal to the offending value, is also imposed on Muhammad Farooq of M/s A-One Steel.
Moreover, a personal penalty of Rs2.0 million is imposed on Mian Altaf Hussain Hali of M/s Helpers. A personal penalty of Rs1.0 million is imposed on Ghulam Jafir of M/s Jafir Traders. A penalty of Rs50,000 each is also imposed on five officials of Engineering Development Board (EDB).
Case was initiated by the R&A on concessionary rate of duty taxes vide SRO 655(I)/2006. The SRO is issued basically issued to promote indigenization and promotion of local industry but some unscruplous importer are using the whole scheme for defrauding the national exchequer. The role of regulatory agencies like Engineer Development Board (EDB) is also pathetic in this regard.
In the Order-in-Original, the Adjudicating Authority appreciated IO Khayam Hussain and the Directorate I&I Customs Karachi on playing due legal roles in unearthing this heinous tax fraud.