The pay phone scam inquiry committee has issued notices to six suspected senior officials of customs and excise group to personally appear before it on October 10. Sources told Business Recorder on Sunday that the committee has finalised investigation against the tax officials involved in issuance of illegal refund of excise duty to the pay phone companies.
The statements of allegations have recommended strict action against the involved officials under the Removal From Service (Special Powers) Ordinance, 2000.
The committee comprising Collector of Customs, Rawalpindi and Member Technical, Customs, Excise and Sales Tax Appellate Tribunal, Lahore has directed the suspended officials to immediately submit reply to the charges/statements of allegations. The officials should also appear before the committee in the office of Member Appellate Tribunal, Lahore along with documentary evidence, record and witnesses, if any, in support of their contention.
The notices have been issued to Muhammad Nazim Saleem, Collector (under suspension); Nadir Khan Hoti, Collector (under suspension), Collectorate of Sales Tax and Federal Excise, Peshawar; Asim Majid Khan, Additional Collector (under suspension), LTU, Lahore; Dr Naeem Aijaz Quershi; Additional Collector (under suspension), Collectorate of Sales Tax and Federal Excise; Zeba Hai Azhar, Additional Collector, Large Taxpayer Unit (LTU), Lahore; Muhammad Saeed Watto, Deputy Collector (under suspension) Sales Tax and Federal Excise; and Ms Sameera Sheikh, Deputy Collector, Collectorate of Customs, Lahore.
On October 10, the committee would hear the viewpoints of the suspended officials and submit its final report to the board, sources said. In all cases, the inquiry committee has observed that suspended officials had facilitated and sanctioned illegal refund of central excise duty, paid in sales tax mode to payphone companies.
According to the inquiry committee, objections of auditors and senior auditors had been rejected by the involved officials for issuance of illegal refunds.
Pay phone companies were not entitled to the refund for the reasons that they were exempt from payment of excise duty on the services provided by them for the period up to July 1, 2005. The companies were neither liable to be registered as service providers nor they charged any excise duty on the services provided by them.