Pakistan is forced to import machinery and raw material for the development of different industrial sectors
Directorate General of Customs Intelligence Peshawar has unearthed massive misuse of tax exemption facility available on the import of raw materials including inks, printing plates, dyes, chemicals and paper imported for printing of the Holy Quran and religious books.
Sources told Business Recorder here on Monday that the said directorate had seized a consignment meant for export to Afghanistan on the charge of unauthorised/ illegal removal and smuggling of raw material from Export Processing Zone. The unit had misused the incentive of exempt regime and evaded duty/ taxes to the rune of Rs 429.13 million which is recoverable from them. The committed offence is in violation of Section 2(s), 18,32,79,80 and 131 of the Customs Act, 1969
The raw material including expensive ink of various types, printing plates, dyes, chemicals and paper, etc, was imported for printing of the Holy Quran, religious and other books and its value was Rs 801 millions while the evasion of duty/taxes in this case comes to Rs 423 million. The contravention report was made and sent to collector adjudication Islamabad for adjudication.
Details of the case revealed that the facts of the case are that the directorate had seized a consignment meant for export to Afghanistan on the charge of unauthorised/ illegal removal and smuggling of raw material from Export Processing Zone, by M/s 4 Brothers International, located at Plot no. B-14-B, Sector-2, Export Processing Zone, Risalpur.
Further investigation into the matter transpired that the unit of EPZ Risalpur is committing the offence of illegal/unauthorised removal and smuggling of raw materials imported under exempt regime since long. The staff of Field Intelligence Unit Mardan on 18.12.2017 visited the premises of the unit in order to probe the matter in depth. During inspection huge quantity of finished goods and imported raw material was found stored in the premises. A few junk printing / cutting machines were found installed and that too in inoperative/idle condition. The installed machines were observed incapable to carryout manufacturing process. Furthermore copies of the Holy Qurans printed by other manufacturing units located in Lahore were also found in the premises of the said unit EPZ, Risalpur.
On the completion of investigation, seizure report in seizure case no.51/2017 dated 20.12.2017 was submitted to the collector of customs (adjudication), Islamabad who decided the case in favour of the department vide order-in-original no.65 of 2018 dated 07.06.2018.