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DTRE scheme: collectors can decide cases of contravention

ISLAMABAD (December 30 2003): After conducting audit of certain exporters, registered under the Duty and Tax Remission for Export (DTRE) scheme, the Central Board of Revenue (CBR) has empowered Collectors of Customs, Sales Tax and Central Excise (Adjudication) to decide contravention cases of exporters registered under the DTRE rules.

Whereas exporters were expecting major relief under the Duty and Tax Remission for Export (DTRE) Rules on the expiry of SRO.410(I)/2001 after December 31, the CBR here on Monday issued an SRO.1124(I)/ 2003 to amend SRO.377(I)/2002 extending adjudicating powers of collectors to settle cases of exporters registered under DTRE.

According to the notification, “The contravention cases made in consequence of audit under DTRE scheme carried out under rule 305 read with rule 305A of the Customs Rules 2001, shall be adjudicated by the officers of the Collectorate of Customs, Sales Tax and Central Excise (Adjudication) having jurisdiction over the Collectorate wherefrom the relevant DTRE approval has been issued.”

Sources told Business Recorder that the CBR has issued notification at such a crucial time when the SRO.410(I)/2001 is going to expire after one day and manufactures-cum-exporters were expecting some major incentives under the DTRE scheme.

However, the question arises whether issuance of such SRO would encourage exporters to get registered under the DTRE regime, sources added.

Following is the text of the SRO.1124(I)/2003 issued here on Monday:

In exercise of the powers conferred by section 179 of the Custom Act, 1969 (IV of 1969), read with section 3 thereof, section 45 of the Sales Tax Act, 1990, read with section 33 of the Central Excise Act, 1944 (I of 1944) and rule 4 of the Central Excise Rules 1944, the Central Board of Revenue is pleased to direct that the following further amendment shall be made in its notification No. SRO.377(I)/2002, dated 15th June 2002, namely,-

In the said Notification, after paragraph 2, the following new paragraph shall be inserted, namely,-

“2A The contravention cases made in consequence of audit under DTRE scheme carried out under rule 305 read with rule 305A of the Customs Rules 2001, shall be adjudicated by the officers of the Collectorate of Customs, Sales Tax and Central Excise (Adjudication) having jurisdiction over the Collectorate wherefrom the relevant DTRE approval has been issued”.

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