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Customs collectors can condone delay in certificate filing

ISLAMABAD (January 11 2004): Giving a major relief to the importers, the Central Board of Revenue (CBR) has empowered the collectors of customs to condone delay in submission of installation/consumption certificate by importers.

The CBR has notified the decision through a Customs General Order (CGO) dispatched to all regional collectors here on Saturday.

The details show that importers were bound to install imported machinery/equipment within specific time period under the relevant concessionary notifications. In case of delay, they would have to pay heavy penalty/actual duty for not submitting installation/ consumption certificates and subsequently approach CBR Headquarters for condonation.

Now, the importers of Karachi and other cities are no more required to visit Islamabad time and again, merely for filing of applications pertaining to condone delay in submission of installation certificate.

However, any person involved in tax fraud can not apply for condonation.

According to the CGO, a number of representations had been received from importers and field formations against the withdrawal of powers to condone delays in the receipt of installation/consumption certificate issued by the concerned authorities earlier delegated to the collectors under the rescinded customs general order 10/1995.

CBR has examined these representations and authorised the collectors of customs to permit condonation of delay in submission of installation certificate.

This is subject to the condition that the importer-cum-applicant has applied for the issuance of installation certificate before the expiry of a limitation period stipulated in the relevant notification and the delay in issuance of certificate was mainly because of departmental reasons.

Moreover, importer-cum-applicant is regularly paying sales tax during the last 3 months as per evidence of sales tax returns, if otherwise not exempt from sales tax registration under the Sales Tax Act, 1990. Similarly, there is no reason to believe that the applicant is involved in any tax fraud in the instant case.

The CBR has also decided that the cases of condonation of delay wherein the applicant has failed to file application for issuance of requisite certificate before the expiry of the stipulated period will continue to be referred to the Board after verification that the applicant was regularly paying sales tax during the last three months and not involved in any tax fraud as defined under the relevant provisions of law.

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