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Minutes of Meeting
  1. September 30, 2015

  2. November 25, 2015

  3. February 16, 2016

  4. May 13, 2016

 

 

No.PSRMA/3-B/3022                                                                                                                                                                                                           October 15, 2015

                                                            

 

 ALL MEMBERS LAHORE CIRCLE

 

MINUTES
OF
THE URGENT MEETING OF EXECUTIVE COMMITTEE (LAHORE CIRCLE)
OF THE PAKISTAN STEEL RE-ROLLING MILLS ASSOCIATION
HELD ON FRIDAY OCTOBER 09, 2015 AT 11.00 A.M. AT
REGISTERED OFFICE, LAHORE

 

 The following members of the Executive Committee were present:-

 

1.         Mian Arif Mehmood                   Vice-Chairman

2.         Mr. Asmat Pervaiz Malik            Member Executive Committee

3.         Mian Ahmad Hassan                 Member Executive Committee

4.         Mr. Javed Iqbal Mughal              Member Executive Committee

5.         Hafiz Muhammad Akbar             Patron-in-Chief PSRMA

 

 The following members also attended the meeting:

 

1.         Mian Murad Ashraf                    Aryan Steel Industries(Pvt)Ltd.              

2.         Mian Tariq Waheed                    M/s Eastern Steel Industries

3.         Mian Manzoor Ahmad                New Shalimar Steel Industries(Pvt)Ltd.

4.         Sh. Muhammad Hanif                M/s S.H. Steel Mill

5.         Khawaja Javed Iqbal                  M/s Mehmood  & Company

6.         Sufi Muhammad Azeem             Sufi Steel Industries(Pvt)Ltd.

7.         Haji Maqsood Ahmad                M/s M. Yaqoob & Bros Steel R/R Mills.

 

 The following business was transacted:

  

 

1.     Confirmation of minutes of the previous meeting Dated. 26-03-2015, 06-05-2015 & 10-07-2015.

 

2.     To discuss Notices for License Fee issued by the Punjab Local Govt. under Ordinance 2001.

 

3.     To discuss the letter dated 05-10-2015 having No.1/CP&R/MEL/CCP/2015 received from Competition Commission of Pakistan regarding Meeting dt 20-10-2015 of the Steel Industry’s stake holders.

 

4.     To discuss Show Cause Notices received from LTU Karachi regarding re-heating furnaces with alternate fuel/energy sources instead of electricity and formation of Committee by the FBR in order to ascertain the exact industrial practice.

 

5.     Any other point with the permission of the Chair.

                                                                                                  

 

 

 

 

            MIAN ARIF MEHMOOD
VICE-CHAIRMAN
PRESIDED

 

1.         Recitation:        The meeting was started with  recitation of verses from the

            Holy Quran by Hafiz Muhammad Akbar Patron in Chief PSRMA followed by translation into urdu.

 

2.         DUA-E-MUGHFARAT

           

Fateha was offered for the wife of elder brother of Mr. Asmat Pervaiz Malik and prayed that Allah the all Mighty and Merciful may rest the departed soul in peace in the heaven and grant courage to the heirs to bear this irreparable loss.

 

3.         CONFIRMATION OF MINUTES.

 

Minutes of the last meetings dt 26-03-2015, 06-05-2015 & 10-07-2015. were reviewed and confirmed unanimously by the Executive Committee.

 

4.         To discuss Notices for License Fee issued by the Punjab Local Govt. under Ordinance 2001.  

              

The house was apprised about   the Notices being issued to our members having re-rolling units under City District Govt Lahore jurisdiction.

 

It was informed that licence fee of steel factories engaged in manufacturing of Iron bars, Girders, T-iron etc has since been increased to Rs.200000/-Vide Serial NO.31 of Notification No.198/DDO/R/T dated 10-06-2015 applicable w.e.f. 01-07-2015.  This fee was previously applicable to the tune of Rs.13000/-(Thirteen thousand only) and such an extraordinary increase of 1538%  is neither under stood nor justified.

 

The house was infomd that Administrator City District Govt has been asked to consider the forgoing facts and in the meanwhile direct the Concerned  Enforcement Inspector not to create harassment and a delegation comprising of our representatives be given time for meeting in  order to resolve the issue.  The Executive Committee decided to deal with the issue mutually by hiring the services of a good lawer and Mian Arif Mehmood Vice-Chairman was made responsible to tackle the issue.  

 

5.         To discuss the letter dated 05-10-2015 having No.1/CP&R/MEL/ CCP/2015 `received from Competition Commission of Pakistan regarding Meeting dt 20-10-2015 of the Steel Industry’s stake holders.

           

The Competition Commission of Pakistan vide his letter No. 01/CP&R/MEL /CCP/2015 dated 5-10-2015 has informed about the meeting of the Steel Industry Stake holders scheduled to be held on 20-10-2015. This is with reference to Complaint lodged in the Competition Commission of Pakistan wherein concerns have been raised about the current mechanism of sales tax rate being charged to the steel melting and rerolling mills operating on captive energy produced from baggase and rice husk.  The Government of Pakistan in the budget 2014-2015 amended the Special Sales Tax Procedure, 2007 vide SRO 421(I)/2014.  Accordingly sales tax charged to the plants operating on electricity produced from bagasse and rice husk are taxed higher in comparison to mills procuring electricity from WAPDA /Disco’s.  As per the information provided by the complainant, the rate of sales tax charged to the plants operating on bagasse and rice husk is 17%  on the value of the steel produced whereas the plants operating on Wapda/Disco’s electricity are charged rupees seven on the per unit of electricity consumed.

 

The modus operandi of charging different rate  of sales tax to the plants operating on bagasse and rice husk may have the object or effect of distorting competition in the steel market.

 

Hafiz Muhammad Akbar Patron in Chief informed that Mr. Khalid Javaid Chairman PSRMA shall attend the meeting.  He also informed that Mian Muhammad Saeed of Madina Steel Industry Kasur has been asked to convey the view point of Melters Association which would be followed by PSRMA as well.

 

6.         To discuss Show Cause Notices received from LTU Karachi regarding re-heating furnaces with alternate fuel/energy sources instead of electricity and formation of Committee by the FBR in order to ascertain the exact industrial practice.

 

The house was informed that our certain members at Karachi are in receipt of show cause Notices under sec 11 of the Sales Tax Act 1990 from

the LTU Karachi who is of the views that re heating of furnaces with

alternate Fuel/energy sources instead  of electricity is not covered under the Special Procedure Rules 2007 and hence evading payment of sales tax.

 

The house was informed that Mr. Khalid Javaid Chairman PSRMA met Mr. Shahid Hussain Asad Member FBR and discussed the issue. Who made a call to the Chief Commissioner Karachi and asked to suspend the expected action who was about to deliver the decision. In order to ascertain the exact industrial practice in vogue and violation of Special Procedure, if any, a committee comprising of the following has been constituted by the FBR vide No.3(5(ST-L&P/2007(PC/136447 dated 5-10-2015:-

 

1.     Mr. Aamir Amin Bhatti, Additional Commissioner (IR)RTO Gujranwala Chairman.

2.     Ch. Anwar Rasheed, Additional Commissioner (IR) Lahore  Member.

3.     Syed Mohsin  Ali Shah Deputy Commissioner (IR)  LTU Karachi Member.

 

The Committee will visit the business premises of selective composite units and re-rolling mills at Karachi, Lahore and Gujranwala and record its findings on the issue as raised by LTU Karachi.

7.         Closure.

 

There being no other point to be discussed the meeting ended with a vote of thanks to the Chair.

 

 

 

                                     For THE PAKISTAN STEEL RE-ROLLING MILLS

                                                                   ASSOCIATION

 

 

                                                     S. MAZHAR HUSSAIN NAQVI,

                                                                 Secretary General

 

 
Minutes of Meeting
  1. September 30, 2015

  2. November 25, 2015

  3. February 16, 2016

  4. May 13, 2016

 

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