KARACHI: Pakistan Customs has estimated recovery of billions of rupees from M/s Olympia Textile Mills – as the amount was stuck up for over a decade – following the order passed by Tariq Bajwa, chairman, Federal Board of Revenue (FBR) for encashing bank guarantee submitted by the company while rejecting the exemption from payment of duties and taxes on import of ring spinning frames. Sources told fbr times that the case was presented before FBR chairman, who ordered that the importers contention for exemption from payment of duties and taxes on import of Ring Spinning Frames is regretted in view of relevant facts and applicable provisions of law. “Bank guarantee already submitted by M/s Olympia Textile Mills Limited and laying with the department should be encashed forthwith,” the sources quoted chairman as saying. As per the brief facts of the case, M/s. Olympia Textile Mills Ltd. had imported a consignment of Ring Spinning Frames and filed the bill of entry on November 5, 1999. The importer claimed benefit of exemption under SROs227(I)/1998 and SRO 987(I)/1999 from the whole of customs duty and sales tax, respectively. The collectorate denied the benefit on the ground that the imported items were being locally manufactured in terms of Customs General Order 7/1998. The importer filed a WP No. 11215/2000 with Lahore High Court wherein the court on January 11, 2001 directed that the petitioner should place his case supported by the documents before the FBR chairman, for disposal of the matter by passing a speaking order. In compliance, the then chairman FBR passed an order on November 21, 2001 upholding the collectorates stance on non-admissibility of the exemption claimed by the importer. The importer then filed a complaint before the office of Federal Tax Ombudsman, which disposed of the order on June 10, 2002 declaring that there was no illegality in CBR’s (now FBR) order. The importer, instead of availing remedy available under Section 32 of the FTO Ordinance, 2000 went to file another petitioner before the Lahore High Court against the order of the FTO. On February 13, 2013 the court ordered the chairman FBR to hear the petitioner and all other concerned parties and decide the matter in accordance with the law through a reasoned order within a period of four months. The department filed an intra court appeal in Lahore High Court, which was dismissed on May 13, 2013. In compliance of the order, a hearing was scheduled by the chairman FBR on July 18, 2013, which was postponed on the importer’s request and next hearing was fixed for September 19, 2013 when the applicant again requested for adjournment. Finally, the case was heard on January 23, 2014. Collector MCC Appraisement West appreciated the efforts of the customs officers including Additional Collector Fayyaz Rasool and Deputy Collector Yousuf Magsi for digging out decade past cases for ensuring recovery of outstanding amount.
Posted on: Mon, 27 Oct 2014 17:48:40 +0000
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