Eight containers loaded with galvanised steel sheets seized

Directorate General Intelligence and Investigation Federal Board of Revenue has seized eight containers loaded with galvanised steel sheets imported by a trading company in the garb of raw material used for the manufacture of goods locally by paying duties and taxes at concessionary rates under SRO 565(I)/ 2006.
According to the details of the case made available to this scribe here on Monday, the agency had seized eight containers where SRO565 (I)/2006 has been misused to clear goods at the concessionary rates of duties and taxes. The company cleared Galvanised Steel Sheets under the garb of raw material for manufacturing by paying duty/taxes at concessionary rates in terms of SRO 565(I)/ 2006 dated 5.6.2006 when the same were being off loaded illegally in Karachi for supply thereof to the local market of Karachi.
The Federal Government to encourage manufacturing in the country has provided a facility to manufacturers to import raw materials on very concessionary rates of customs duty under SRO 565(I) 2006 dated 5.6.2006. To avail this facility a manufacturers has to obtain a "Survey Certificate" from the concerned Regional Tax Office verifying manufacturing capacity of the manufacturer. Imports are allowed on the basis of the "Survey Certificate".
Sources said that the Customs Intelligence Karachi received a credible information that M/s Aadil Trading Company, Gujranwala (NTN-1529661-0) is involved in tax fraud of importing Galvanised Steel Sheets by paying duty/taxes at concessionary rates in terms of SRO-565(I)/ 2006 dated 5.6.2006 and supply thereof in the local market of Karachi instead of transporting the same to their manufacturing facility at Gujranwala. Surveillance was mounted and a consignment of 8 containers with 180 Metric Tons of GP Steel Sheets imported by the above named unit was seized when the same was being off loaded for supply in the local steel market of Karachi. The goods were cleared on concessionary rates of duty/taxes under SRO-565(I)/2006 dated 5.6.2006 through MCC (PaCCS) against Survey Certificate No ST/Ind-Survey/2011/Grw/327 purportedly issued by RTO, Gujranwala.
The staff of Customs Intelligence immediately visited the given address of the trading company, Gujranwala but to their surprise the so-called factory was locked being non-operational for the last 2 years. It was also revealed that there were no in-house facilities/machinery, which confirmed that the unit had committed the tax fraud. The staff of Customs Intelligence Karachi rushed to PICT and detained 09 more containers of Galvanised Iron Steel Sheets imported by this trading company, Gujranwala and cleared Model Customs Collectorate PaCCS, Karachi. Total value of Galvanised Steel Sheets loaded in 17 containers is around 20.00 million. Timely action of Customs Intelligence foiled the attempt of the said company to evade Rs 4.00 million through this tax fraud.
However, scrutiny of data further revealed that two identical consignments comprising 16 containers were imported by the above named unit and were cleared by Model Customs Collectorate PaCCS, Karachi. The value of these two consignments of Galvanised Iron Steel Sheets is Rs 19 million and evaded duty/taxes come to Rs 3.5 million. The FIR of the case has been lodged and further investigation into different aspects is underway, directorate added.