Vehicles carrying huge quantity of non duty-paid cigarettes seized

Directorate General of Intelligence and Investigation Inland Revenue (IR) Federal Board of Revenue (FBR) has seized a large number of vehicles carrying huge quantity of non-duty paid tobacco/cigarettes in Khyber Pakhtunkhwa (KPK) during ongoing national enforcement drive against manufacturers and suppliers of counterfeit/non-duty paid smuggled cigarettes and tobacco.
Sources told Business Recorder here on Thursday that the agency has also intercepted vehicles of tobacco dealers and manufacturers involved in the clearance of cigarettes and tobacco without charging/payment of Federal excise duty. The ongoing drive against the manufactures and suppliers of non-duty paid tobacco/cigarettes in KPK has totally stopped supply of such kind of items to the retail outlets and shops.
This is the biggest success of the specialised intelligence unit of the Directorate General of Intelligence IR to seize such a large number of vehicles carrying non-duty paid tobacco/cigarettes in KPK. A dedicated team of honest tax officials of the agency in KPK has completely stopped the supply chain of the non-duty paid tobacco/cigarettes in the province.
The special team headed by an Additional Collector, well known for his honesty, has created serious problems for the smugglers of non-duty paid cigarettes in the KPK, giving a clear and loud message to the violators of law to surrender or ready to face the music. This is a classic example of enforcement drive in Pakistan reflecting that the dedicated and honest tax officials can check smuggling of items in the KPK, if desired. Similar kind of exercise would soon be launched in other provinces following successful enforcement drive in the KP.
A few incidence/contravention reports of the Directorate General of Intelligence IR clearly reflect that the level of the compliance in the KPK following enforcement drive of the agency against the non-duty paid un-manufactured tobacco/cigarettes in KPK.
One of the contravention reports says that in pursuance of credible information that some tobacco dealers and manufacturers are involved in the clearance of cigarettes and tobacco without charging/payment of Federal Excise Duty leviable thereon, a team consisting of the above mentioned Officers and staff set off on surveillance duty and intercepted vehicle bearing registration No GLT-5817 carrying 9,474kgs.
They were asked to furnish FED invoice as per requirements under Rule 82 of the Federal Excise Rules, 2005. They, however, failed to furnish the same. This prima facie shows that the un-manufactured tobacco was being transported in violation of the Federal Excise Act, 2005 and the same is punishable under Section 19(3)(a), (b), (c) and 19(11) of the Federal Excise Act, 2005.
In exercise of powers vested under the Federal Excise Act, 2005, the above mentioned goods were seized with immediate effect. The details of another case revealed that in pursuance of credible information that some tobacco dealers and manufacturers are involved in the clearance of cigarettes and tobacco without charging/payment of Federal Excise Duty levlabie thereon, a team consisting of the above mentioned Officers and staff set off on surveillance duty and intercepted vehicle carrying 7,646 kgs net un-manufactured tobacco. Driver was asked to furnish FED invoice as per requirements under Rule 82 of the Federal Excise Rules, 2005.
He, however, failed to furnish the same. This prima facie shows that the un-manufactured tobacco was being transported in violation of the Federal Excise Act, 2005 and the same is punishable under Section 19(3)(a), (b), (c) and 19(11) of the Federal Excise Act, 2005 and recoverable under Section 14 (1) of the Federal Excise Act, 2005 along with default surcharge under Section 8 of the Act ibid (to be calculated at the time of payment). In exercise of powers under the Federal Excise Act, 2005, the above mentioned goods were seized with immediate effect.
Anther case revealed that in pursuance of credible information that some tobacco dealers and manufacturers are involved in the clearance of cigarettes and tobacco without charging / payment of Federal Excise Duty leviable thereon, a team consisting of the above mentioned Officers and staff set off on surveillance duty and intercepted two vehicles bearing registration No K-6514 carrying 300 Cartons containing 150000 packets of cigarettes and registration No K-7298 carrying 300 cartons containing 1,50,000 packets of cigarettes.
They were asked to furnish FED invoices as per requirements under Section 18 of the Federal Excise Act, 2005, Two invoices bearing sr. No 41 dated 07.03.2012 and invoice no. 42 dated 07.03.2012 were produced which were examined. Cross examination of these invoices with invoice book maintained at the factory premises through Superintendent, RTO, Peshawar posted at the premises of registered premises under Section 45 of the Federal Excise Act, 2005, revealed that last invoice issued from the factory premises was Sr No 13/2012 dated 29.02.2012 thus both the above invoices produced by the truck drivers are totally different from the declared invoice book maintained.
Excise Incharge of the registered person while clarifying their position told that both trucks were cleared from the premises of their "sole distributor" and that there is another invoice book from which invoices are issued. He also confirmed that their "sole" is still un-registered that's why he is issuing invoices bearing name, registration no. and address of the said unit.
In view of the above, it has been established that the unit is involved in issuance of fake invoices for delivery of the non-duty paid cigarettes through maintaining multiple invoice books at a time. Mere mention of the word "sole" on the 2nd Invoice book could not justify their stance but instead FED and Sales Tax charged and collected through 2nd / fake invoice book are recoverable from the unit under the relevant provisions of the Federal Excise Act, 2005 and Sales Tax Act, 1990.
In exercise of powers under the Federal Excise Act, 2005, the above mentioned goods along with conveyance were seized with immediate effect. This seizure/contravention report is being forwarded Commissioner (IR), Zone-II for passing order under section 14 read with Section 46(2A) of the Federal Excise Act, 2005. The Directorate General of Intelligence and Investigation IR FBR has also detected similar kind of many other cases reflecting remarkable performance of the dedicated intelligence unit of the KPK, sources added.