According to details the said Company during the tax period September 2022, to March 2023 declared supplies of “Lead” plates to Battery Manufacturers and other items valuing Rs 4,270,272,459/- involving output tax Rs 730,301,199/-.
The Deputy Commissioner Inland Revenue, Corporate Tax Office, FBR Karachi has registered a case of Rs 510,290,614/- tax fraud under section 2(37) and others of the Sales Tax Act 1990.
The FIR dated 20-06-2023 is lodged against accused persons Muhammad Amir, Moosa Watan Zada Khan the Directors of Amir Industries (Private) Limited, Orangi Town & Hawks Bay Scheme 42, in connivance with other accused person Zohaib Qureshi owner of M/s Moinuddin Impex, Naz Chamber, Shahrah-e-Liaquat, Karachi, Muhammad Yousuf owner of M/s Masha Allah Kiryana Store, Chishtian, Bahawalnagar, Mazhar Abbas owner of M/s M.A. Enterprises, Industrial Area, Karachi, Zahid Amin owner of M/s Zahid Impex, Skardu, and others.
According to details the said Company during the tax period September 2022, to March 2023 declared supplies of “Lead” plates to Battery Manufacturers and other items valuing Rs 4,270,272,459/- involving output tax Rs 730,301,199/-. The supplies were declared to registered and un-registered persons as under:
- M/s Pakistan Accumulators (Pvt) Ltd,
- Ministry of Defence Production,
- Century Engineering Industries (Pvt) Ltd,
- Metapak Ind Pvt Ltd,
- Malik Mij Chunxing Resources Recycling Co. Ltd,
- Baig Processing Industries (Private) Limited,
- Exide Pakistan Limited,
- Qamar (UN-R/P),
- Bolan Casting Limited,
- Muhammad Farooq Shaikh (UN-R/P),
- Muhammad Rafique (UN-RP), and
- Abdul Haq (UN-R/P) etc.
The accused Company in connivance with other accused persons was involved in the claiming of illegal input tax adjustment on the strength of fake/flying invoices. A chain inquiry of the said suppliers was carried out which revealed that huge numbers of fake units were registered with FBR and used to transmit fake input tax to the end beneficiaries.
Based on the documentary evidence, it can be concluded that the accused persons are knowingly, fraudulently involved in the act of commission/ omission and falsifying the Invoices in order to evade sales tax liability, which directly comes under the ambit of tax fraud as per Section 2(37) of the Sales Tax Act, 1990.
As per Complainant Muhammad Naveed, Deputy Commissioner-IR, CTO, Karachi, the investigation revealed that the main input tax was originally generated by three suppliers. The whole input tax was generated on the basis of annex C of the Sales Tax Returns filed by these three dummy registered persons which was passed on to various other dummy registered persons including the five given registered persons. It shows that input tax was claimed against fake invoices which were generated without any valid purchase invoice or bill of entry in violation of Section 7 of the Sales Tax Act 1990. Hence, the basis of the whole input tax of Rs 6,802,252,202/- is fake, the report disclosed.
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