HC seeks customs official’s explanations for reduction of evaded VAT
Staff Reporter :
The High Court has sought explanations from customs official Mohammad Enamul Haque for his decision of reduction the amount of evaded value added tax (VAT) from Tk 58.07 million to Tk 7.9 million for a company for the fiscal year 2014-2015 to 2018-2019.
Enamul Haque was performing the functions of the Commissioner of the Customs, Excise and VAT Commissionerate in Chattogram when the decision to reduce the amount was taken (November 18 in 2020).
In a recent order, the High Court bench of Justice Muhammad Khurshid Alam Sarkar and Justice Sardar Md Rashed Jahangir
asked the Commissioner to explain on what basis he had decided to reduce the amount. He has to explain his position to the court in the form of an affidavit by May 9 this year.
While depositing the demanded VAT in installments the Commissioner initiated a proceeding against the accused company, BSP Food Products (Prv) Ltd, to realize an additional amount of Tk 4.8 million as 2 percent interest for the delay in making payment of the said value added tax.
The High Court also sought explanations from the Commissioner to explain as to why he had not claimed 2 percent interest at the time of final adjudication on the VAT.
Deputy Attorney General Kazi Mynul Hassan who represented the Commissioner in the court hearing said authorities of the commissionerate has given an explanation on imposition of 2 percent interest.
However, they didn’t give any explanation over the decision of reduction the amount of evaded value added tax (VAT) from Tk 58 million to Tk 7.9 million, the state lawyer also said.
According to the case documents, Customs Commissioner in Chattogram on December 8 in 2019 issued a notice upon the authorities of the BSP Food Products stating that the company has evaded VAT amounting Tk 58.07 million from 2014-2015 fiscal year to 2018-2019 fiscal year.
Later the company made a reply to the notice denying the entire allegations and then the Commissioner made a final adjudication of the matter and issued another notice on November 18 in 2020 asking the company to deposit Tk 7.9 million as evaded VAT.
