In a significant development, the Customs Appellate Tribunal Islamabad has imposed a hefty penalty on Gerry D’nata and other airport services for their involvement in fraudulent clearance of Helicopter parts, resulting in a staggering loss of Rs. 152 million to the national exchequer.
Penalties Imposed by the Tribunal
Under the Agha Khan fraud case, members of the Customs Appellate Tribunal Islamabad, Judicial Muhammad Arif Khan, and Member Technical Abdul Waheed Marwat, levied a penalty of Rs. 5 million on Gerry D’nata, Rs. 1 million on Shaheen Airport Services, and Rs. 1 million on Royal Airport Services. These penalties were imposed due to their failure to properly hand over goods to the authorized agent of M/s Agha Khan, neglecting the required verification process.
Smuggling through Misrepresentation
M/s Unique Enterprises, under the name of M/s Aga Khan Foundation, imported goods claiming them to be “Helicopter Controller Boxes, Spectacle Frames, Helicopter ELT Units” through 69 Goods Declarations, obtaining inadmissible benefits of 9903.
Collusion and Violation
AFU Sheds (GHAS), including M/s Gerry’s D’nata, M/s Shaheen Airport Services, and M/s Royal Airport Services, issued delivery documents for the shipments without verifying the One-Customs Goods Declarations. This was done in collusion with Clearing Agents, a clear violation of the Customs Rules 2001.
Consequences and Evaded Amount
The Customs Collectorate, Islamabad lodged an FIR against Customs staff, Shed staff, and Clearing Agents due to fraudulent clearances and missing One Customs GDs records. The act of fraudulent clearances of helicopter parts shipments resulted in the evasion of duty and taxes amounting to Rs. 152.5 million.
Adjudication Order
The Collector of Customs (Adjudication), Islamabad, ordered M/s Capital Cargo Services to pay the evaded duty and taxes of Rs. 152.5 million. Additionally, penalties of Rs. 10 million on Gerry’s D’nata, Rs. 2 million on Shaheen Airport Services, and Rs. 2 million on Royal Airport Services were imposed. The Adjudicating authority also recommended initiating the process of revoking their licenses as they failed to meet their responsibilities as per Customs Rules, 2001.
Exonerating M/s Aga Khan Foundation with a Warning
M/s Aga Khan Foundation was exonerated from the charges leveled against them, but a warning was issued, advising them to exercise due diligence to avoid such scams in the future. The Foundation’s Logistics and Clearance staff were recommended to accompany clearing agents in all future deliveries to ensure transparency.
A Wake-up Call
The massive scam involving fraudulent clearances of goods over a year in a high-security customs area has raised concerns about the involvement of Customs officials and PRAL staff posted at AFU, Islamabad, Collectorate of Customs, Islamabad.
