Customs Uncovers Rs. 1.9 Billion Tax Evasion by Textile Company
The Directorate framed a contravention case for the recovery of Rs. 1.9 billion in evaded duties and taxes.
ISLAMABAD: The Directorate of Post Clearance Audit (PCA), Customs (North) Islamabad, has unearthed a massive tax evasion scam involving the misuse of the Export Facilitation Scheme (EFS) by Premium Textile Blanket Industry, Peshawar.
The firm imported 2,826.1 metric tons of duty- and tax-free textile fabric under the EFS regime, intended for the manufacturing of garments for export to Afghanistan. However, instead of fulfilling its declared export commitments, the company diverted the imported goods to local markets in violation of customs regulations.
Upon physical stock verification by a team from PCA Islamabad, it was found that no trace of the imported material remained at the factory premises, confirming misuse of the facility and a deliberate attempt to evade government revenue.
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The Directorate framed a contravention case for the recovery of Rs. 1.9 billion in evaded duties and taxes. The case was adjudicated in favor of the Customs Department by the Collector of Customs (Adjudication), Islamabad.
Premium Textile Blanket Industry filed an appeal against Order-in-Original No. 180/2024 dated August 30, 2024. However, the Customs Appellate Tribunal, Islamabad, upheld the decision and imposed an additional surcharge exceeding Rs. 3.9 billion.
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