ISLAMABAD: Karachi-based multinational cigarette manufacturing company Philip Morris (Pakistan) Ltd has confessed to illegal use of its machinery installed in the unregistered cigarette factory in Buner (KP). Well placed sources in FBR told Daily Times that the tax department has initiated an inquiry against the company and owner of the factory who were trying to install the machinery in the unregistered cigarette factory. Officials of the company have accepted that this was their machinery. The Directorate of Intelligence and Investigations (Inland Revenue) is investigating whether or not the machines have been shifted or sold to someone after fulfillment of all legal formalities and rules and regulations with Large Taxpayer Unit Karachi, the sources added. Sources said that when the ongoing investigating would be completed, the directorate would act against the company according to Federal Excise Act 2005. “We can impose the fine and capture machinery according to law but this will only happen after the directorate fixes responsibility”. It is worth mentioning here that Additional Director I&I IR Peshawar, Muhammad Ayaz had submitted an incident report to the director general I&I IR Islamabad regarding a raid at the unregistered cigarette manufacturing unit running in the village of Chingley, Buner. The incident report said initial investigations conducted by the Directorate of Intelligence and Investigation-IR revealed that a cigarette manufacturing unit was being run under the supervision of Waheed Khan at the said address without getting Federal Excise registration. This means that the unit was effectively involved in the evasion of Federal Excise Duty. In order to probe into the matter, a team consisting of the following members along with support staff was deputed to take necessary legal action under the Federal Excise Act, 2005 and to confiscate the goods manufactured in violation of the relevant provisions of the Federal Excise Act 2005. The team raided the manufacturing premises, but said the manufacturing facility was found closed. A man was found having a lighted fire in a far-off corner of the closed premises but he refused to open the main gate. No other person in or around the factory premises was found. The team returned and decided to visit the premises under Section 25/26 read with Rule 62/63 of the Federal Excise Act, 2005 again on Saturday (10th December 2016) and reported that the said factory was found opened, four cigarette making machines and packing, wrapping and bundling machines were found to be installed or were under the process of installation. The examination of these machines revealed that the machines were been purchased from M/s Philip Morris (Pakistan) Ltd, the report said. The owner Waheed Khan was interviewed who was even unaware of the name of their factory and the brands of cigarettes being manufactured, which revealed the hidden motives of acting like a facilitator for concealed manufacturing for other local cigarette manufacturers, the report said.