The Federal Board of Revenue (FBR) will give decision on the findings of Alternative Dispute Resolution Committee (ADRC) for settlement of an old controversy whether accurate customs duty was paid on the import of machinery by some cement manufacturers.
Sources said on Friday that some cement units imported machinery at a concessionary rate of customs duty in 1995 under SRO 484(I)92. This notification related to concessionary rate of duty on import of plant, machinery and equipment. The machinery was provisionally released at concessionary rate of duty. This was subject to pending decision of the FBR.
The units had also taken the plea that the machinery was not manufactured locally, making it eligible for charging reduced rate of customs duty under the concessionary notification.
Later, it came to the notice of the board that the machinery was manufactured locally, hence was subject to statutory rate of duty. It was objected that concessionary rate of duty was applicable on the import of machinery under relevant notification, but in this case it was manufactured locally.
Sources said that the board had constituted a committee, comprising senior customs officials, to submit its findings on the accurate determination of duty in the case. The committee found that the machinery was also manufactured locally.
The units went into litigation against the board's stance and also approached the FBR for settlement of case under ADR mechanism, sources said. The ADR committee gave its findings in the case of the machinery imported by units. According to the committee, the board should take decision on the basis of list of locally manufactured items applicable in 1995.
Sources claimed that board is likely to give a ruling that the case is sub judice at the judicial fora and whatever the court decided would be accepted by the FBR.
Comments
Comments are closed.