Customs intelligence recovers Rs221.7 million from OGDCL for claiming wrong exemption

Customs intelligence recovers Rs221.7 million from OGDCL for claiming wrong exemption

KARACHI: Directorate of Customs Intelligence and Investigation, Karachi has recovered Rs221.7 million from Oil and Gas Development Company Limited (OGDCL) against avoiding payment of duty and taxes on import of seamless pipes.

Officials at the directorate on Wednesday said that the oil and development company imported seamless pipes from China and got cleared through MCC Appraisement East, Karachi while availing exemption under SRO 678(I)/2004.

“The GD was assessed and cleared by the collectorate under claimed exemption on customs duty at five percent and additional customs duty at four percent total amounting to Rs71.77 million against total assessed value of Rs797.53 million,” according to an official note sent to Federal Board of Revenue (FBR) Headquarters.

It said that the scrutiny of GD revealed that the exemption was wrongly claimed as it was not admissible on the goods being locally manufactured.

While realizing the factual position the representatives of OGDCL submitted pay orders amounting Rs221.71 million, which was drawn on National Bank of Pakistan (NBP).

The payment of differential amount proved that the OGDCL had wrongly claimed exemption under the SRO 678(I)/2004 which resulted into loss of government revenue. The paid amount included Rs39.87 million as customs duty, Rs154.56 million as sales tax and Rs27.27 million as additional sales tax.

The pay orders submitted by the company were sent to the clearance collectorate for deposit in the government treasury after assessment of the GD so that consignment may be de-blocked.

The directorate said that the amount was deposited in the government treasury. However, role of customs officers/officials is being ascertained in the matter.

Director I&I Irfan Javed praised the extraordinary efforts of Adnan Rafiq, Deputy Director, in detection of the evasion.

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