KARACHI: The Collectorate of Customs Adjudication-I on Thursday conducted a collective hearing into three massive tax evasion cases amounting to Rs 373.6 million against Karachi International Containers Terminal (KICT), which allegedly evaded tax on the import of units of used Quay Cranes with spreaders, standard accessories, fittings and spares.
The hearing was conducted in the office of the Collector of Customs Adjudication-I Farid Iqbal Qureshi. Lawyer Salman Mirza and Shahreyar Maher were presented before the Collector of Customs Adjudication-I presenting the KICT. Clearing agent of Port Connection (Pvt) Limited and Kwokkeelau, a female representative of Japanese company which deals in machinery, also attended the hearing.
Sham Lal, the departmental representative of Directorate of Post Clearance Audit (PCA), attended the hearing on behalf of the directorate.
During the hearing, the departmental representative of PCA, M/s KICT clearing agents and Japanese company’s representative submitted their para-wise comments before the collector.
After hearing the arguments and recording the statements of cousels, Collector Farid Iqbal Qureshi adjourned the hearing for further time period. The next hearing date into the case has not yet announced by the competent authority.
It is pertinent to mention here that the Customs Directorate of Post Clearance Audit (PCA) has made three contravention reports against Karachi International Containers Terminal Limited (KICT) in its alleged involvement in tax evasion of around Rs373.6 million in share of sales tax with additional sales tax and income tax in importation of units of used Quay Cranes complete with spreaders, standard accessories, fittings and spares.
The PCA was of the view that the importer KICT Limited was involved in evasion of leviable sales tax and withholding tax, income tax by claiming inadmissible benefit of SRO 575(I)/2006 without providing “Annexure B” from Board of Investment (BOI), which is mandatory requirement for availing benefit against serial 16 of the claimed SRO 575(I)/2006.
Therefore, the PCA alleged 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.
