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Kohinoor co fined for evading VAT

By Staff Correspondent
The customs authorities have fined Kohinoor Chemical Co. over Tk 31 lakh for evading VAT and supplementary duties of more than Tk 13 lakh.
The Commissioner of Customs. Excise and VAT. Dhaka (North) yesterday ordered the cosmetics company to pay the penalty and the evaded taxes Immediately.
The customs authorities during an investigation found that the company was producing Its Tibet" trademark products outside the factory without informing the authorities concerned to evade VAT.
Acting on a tip-off. a special squad of VAT officials raided the factory of Lily Cosmetics at Gazlpur in May last year and seized different cosmetics products of Kohinoor Chemical Co.
Lily Cosmetics produced Ko-hlnoor products without any declaration to the VAT authorities and evaded Tk 1052000 duties, they said.
The Commissioner in his order directed Kohinoor Chemical Co to pay Tk 2.49.572.67 to the government treasury as duty and taxes on the seized
goods. He also ordered payment of Tk 10.52.298.82 to the government treasury for the goods Croduced and supplied earlier y Lily Cosmetics.
In June last year, the Customs Commissionerate Dhaka (North) had issued a show cause notice on Kohinoor asking why steps would not be taken against it and Lily Cosmetics for producing products evading taxes.
As no reply was given by the two companies, the customs authorities fixed November 29 for hearing of the case and asked the accused parties to be present.
On that day. the Kohinoor authorities wrote a letter to the customs authorities to extend the time to reply to the sbow-cause notice and re-fix the hearing date. The Kohinoor authorities also said that the complaint was against Lily Cosmetics which was engaged in producing Kohlnoor's counterfeit products.
But Kohinoor authorities did not lodge any complaint against Lily Cosmetics tnat It was producing counterfeit products, customs officials said in the case.
The Kohinoor authorities neither replied to the showcause notice nor appear for the hearing.
Meantime, the file of the case was mysteriously lost but and it was framed again.
■Earlier. Kohinoor Chemical Co. evaded Tk 55 lakh taxes but had to pay later, customs sources said.
Authorities of Kohinoor Chemical Co. in a fax message to The Daily Star last night denied the allegations and said Lily Cosmetics "probably was enSaged in producing counterfeit products of Kohinoor".
They said the company had no relation with Lily Cosmetics. Some vested groups were trying to defame the company by damaging its goodwill, they claimed.