ISLAMABAD: In a drive against steel melters and re-rollers who are involved in massive evasion of Federal Excise Duty by way of suppression of actual production and supplies and suppression of actual value of supplies in violation of sub-section 5A of section 3 of Federal Excise Act, 2005, the Directorate of Intelligence and Investigation-Inland Revenue, Lahore carried out proceedings under Section 25 and Section 45 of Federal Excise Act, 2005 against two industrial units.
According to an announcement made by the FBR spokesman here Wednesday, the action has been taken against these units that were manufacturing iron and steel products (steel ingot and other long profiles of steel) and were working at adjacent premises situated at Sheikhupura.
The said units had not paid due Federal Excise Duty payable in sales tax mode on its dutiable supplies by way of concealment of actual production and sales. During the search, certain record was impounded which was under scrutiny.
Further investigation is underway. The Directorate General Intelligence and Investigation-Inland Revenue shall continue such operations in order to detect the fraud of duty causing loss or revenue amounting to hundreds of millions of rupees.
TLTP adds: Meanwhile, the Federal Board of Revenue (FBR) on Wednesday waived the condition of bank guarantee and pay order under temporary import against exempt sales tax and customs duty.
The FBR issued SRO 847(I)/2021 to allow the persons availing facility of temporary importation for subsequent exportation to clear consignments without submitting bank guarantee or pay order. However, the persons shall be required to submit indemnity bond or post-dated cheque equivalent to the amount of payable duty and taxes.
The FBR said that the export shall be processed subject to profiling by the Risk Management System, the Assistant Collector or the Deputy Collector, in charge of the export station, may examine goods being exported in case of specific information regarding the misuse of the facility with the permission of the collector and findings of the examination shall be uploaded in the system.
The FBR further said that immediately after re-export of goods, the applicant shall produce evidence to the collector of customs concerned that the goods have been re-exported within the stipulated time period. On production of such evidence or declaration, the indemnity bond and post-dated cheque submitted at the time of import shall be released.