Customs officials have filed a case against Jamal Yarn Trading in Narayanganj over alleged VAT evasion of Tk 40.39 crore between January 2022 and August 2026.

The Customs, Excise and VAT Commissionerate, Narayanganj, filed the case after an inspection of the yarn importer and supplier found discrepancies in its sales records and VAT returns, according to an official press release.

The enforcement team inspected the company’s premises at 56 SM Maleh Road in Tanbazar, Narayanganj Sadar, and examined its stock and accounting records.

During the inspection, the company failed to produce VAT-related documents. The officials later seized several registers, notebooks, invoice books, guard files, Excel copies retrieved from a computer and a statement signed by a company representative.

A preliminary review of the seized documents showed that the company had recorded total yarn sales of Tk 659.15 crore from 2022 to 2026.

VAT applicable at rates of 5 per cent and 7.5 per cent on the sales was calculated at Tk 40.40 crore, the release said.

However, the company’s VAT returns (Mushak-9.1) showed sales of only Tk 39.17 crore for the period from January 2022 to August 2026.

The company deposited just Tk 1.33 lakh in government revenue through treasury challans during the same period, according to the release.

After deducting the amount deposited, the authorities calculated the outstanding VAT at Tk 40,39,10,942.

The commissionerate alleged that the company violated Sections 15, 32, 45, 49 and 64 of the Value Added Tax and Supplementary Duty Act, 2012, and Rules 25, 40, 42 and 47 of the VAT and Supplementary Duty Rules, 2016.

The alleged offences are punishable under Section 85 of the Act. The case has been filed to recover the evaded VAT, applicable penalties and interest under Section 127.