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Customs Tribunal dismisses case of Basfa Textile

Customs Tribunal dismisses case of Basfa Textile

LAHORE: Customs Appellate Tribunal dismissed case of Basfa Textile versus Customs Adjudication Lahore. Tribunal Judge Khawaja Omer Mehdi  Member Technical Bench-I issued judgment that the appellant has failed to produce any illegality in impugned order passed by the Collector of Customs (Adjudication) and appeal has been dismissed.

According to details, Basfa Textile imported consignment of Indian raw cotton and sought clearances vide GD- No-18458 dated March 2, 2013.

Basfa claimed  2 percent sales tax under SRO 1125 (I)/ 2011 instead of 16 percent, during the audit it was observed that said consignment was liable for the payment of 16 percent sales tax with income tax, importer wrongly claim for benefit of sales tax.

The Adjudication decided that the Basfa is liable to sales tax amounting to Rs 34, 15, 688 and Rs 1,70, 784 in income tax under section 34 of income tax along with default surcharge and punishable under the section 33 (11) (17) under sales tax act 1969. Collector Customs finally charged Rs 35, 86, 472 in sales and income tax.

The  “Basfa” owner challenged the decision in Customs Appellate Tribunal and argued that the order is capricious, not in the eye of law and not based on fact and figures while the Customs department submits para-wise comments and denied allegations.

After hearing the case Tribunal dismissed the case and issued judgment that appellant failed to produce any illegality in the in impugned order and same order has mentioned.