KARACHI: Customs Directorate of Post Clearance Audit (PCA) has made a contravention report against M/s Karachi International Containers Terminal Limited (KICT) on its alleged involvement in tax evasion of Rs 238 million in wake of Sales Tax, Additional Sales Tax and Income Tax in importation of two complete units of used Quay Cranes.
According to details, the authorities concerned of PCA are of the view that the importer KICT Limited was involved in evasion of leviable taxes by claiming inadmissible benefit of SRO 575(I)/2006 without providing “Annexure B” from Board of Investment (BOI), which is mandatory for availing benefit against serial 16 of the claimed SRO 575(I)/2006.
Therefore, the authorities are of the view that the importer M/s KICT violated the provisions of Section 32(1) (2) and 3A of the Customs Act, 1969; Section 3(1), Section 3, 6 and 7 read with Section 34 of the Sales Tax Act, 1990 and Income Tax Ordinance, 2001 punishable under clauses (1), (9) and (14) of Section 156(1) of the Customs Act, 1969; punishable under Section 33(5) and Section 7A of the Sales Tax Act, 1990 read with Chapter X of the Sales Tax Special procedure Rules 2007 (special procedures for payment of Sales Tax by the importers) and punishable under relevant provisions of Income Tax Ordinance, 2001.
In the contravention report, the PCA further stated that the importer M/s KICT was availing inadmissible benefit against Serial No.16 of SRO 575(I)/2006 and got clearance of 2 Quay Cranes on payment of duties and taxes i.e. Custom Duty of Rs 53.97 million and Income Tax of Rs 56.67 million. However; the importer M/s KICT Limited should have to pay Sales Tax of Rs 226.68 million along with additional Sales Tax and total Income Tax of Rs 11.33 million.
In view of aforesaid information, the authorities concerned of customs were of the view that the M/s KICT Limited willfully evaded the tax of Rs 238 million and the Goods Declaration (GD) No KAPW-HC-13351 was processed in perfunctory way.
Thus, the importer M/s KICT and their clearing agent M/s Ports Connection (Pvt) Limited have therefore violated the provision of Section 32(1) (2) and 3A of the Customs Act, 1969; Section 3(1), Section 3, 6 and 7 read with Section 34 of the Sales Tax Act, 1990 and Income Tax Ordinance, 2001 punishable under clauses (1), (9) and (14) of Section 156(1) of the Customs Act, 1969; punishable under Section 33(5) and Section 7A of the Sales Tax Act, 1990 read with Chapter X of the Sales Tax Special procedure Rules 2007 (special procedures for payment of Sales Tax by the importers) and punishable under relevant provisions of Income Tax Ordinance, 2001.
Furthermore, the Directorate of Post Clearance Audit has forwarded the contravention report to the adjudicating authorities for further proceedings of the case.
