KARACHI: The Directorate of Post Clearance Audit-PCA in its recent move has made yet another contravention report against the importer M/s Karachi International Container Terminal (KICT) Limited in its alleged involvement in tax evasion of Rs 85,188,063 in share of Custom Duty (CD), Sales Tax (ST) and Income Tax (IT).
In the contravention report, the PCA authorities were of the view that the importer M/s KICT Limited was imported a hybrid control system for rubber type gantry cranes, along with beery hose packs, electric house, generating sets, platform for hybrid system installation other material for installation and air condition hybrid system under PCT heading 8543.7090; 8538.1000; 8502.1310; 8415.1010; 8431.4900; 8415.1020; 7326.1990; 7307.1990; 7307.2900; 8502.1200; 8431.4900; 8415.1020; 7326.1990; 7307.2900 and 8502.1200.
During the scrutiny of the import data, the PCA authorities found that the importer M/s KICT Limited was allegedly involved in tax evasion of Customs Duty, Sales Tax and Income Tax by claiming inadmissible benefit of SRO 659 (I)/2007 and SRO 575(I)/2006 by mis-declaring the PCT classification under incorrect PCT heading.
Therefore, the importer M/s KICT Limited 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 the Section 156(I) of the Customs Act, 1969; punishable under Section 33(5) and Section 7 A 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 importer and punishable under relevant provisions of income tax ordinance 2001.
The PCA authorities found that the import data relating to imports goods declarations No KAPW-HC-154919; KAPW-HC-26938 and KAPW-HC-40576 provided by the importer which have been observed that the importer failed to get exemption under SRO 575(I)/2006 from Board of Investment (BOI) on various items of subject GDs under SRO 659(I)/2007.
In light of the aforementioned information, the PCA authorities have reached at the points that the importer M/s KICT Limited intentionally and willfully caused loss to the government exchequer amounting to Rs 85,188,063 and therefore 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 the Section 156(I) of the Customs Act, 1969; punishable under Section 33(5) and Section 7 A 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 importer and punishable under relevant provisions of income tax ordinance 2001.
The PCA authorities forwarded the matter to the adjudicating authorities for further legal proceedings.
