KARACHI: Customs Collectorate Adjudication-II has issued a show-cause notice to M/s Pioneer Textile in case of duty/taxes evasion of Rs 806,633 in share of Additional Sales Tax of Rs 399,323 and Income Tax of Rs 407,310 on import of textile fabric through un-due claim under SRO 1125(I)/2011 at import stage as admissible to manufacturing unit.
Directorate of Customs Intelligence and Investigation, Karachi has seized four consignments of M/s Pioneer Textile having Goods Declarations (GDs) KAPE-HC-54040-23122013, KAPE-HC-66846-29012014, KAPE-HC-74837-20022014 and KAPE-HC-77710-03032014 of assorted fabric of 46,456 kg and import value of Rs 19,966,168.
Directorate of Intelligence and Investigation received a credible information that some unscrupulous importers are misusing the SRO1125(I)/2011 by clearing the imported fabric as industrial manufacturers, whereas either their manufacturing units do not exist at the notified business addresses or even if they existed, they had no or modicum manufacturing facility and have inflicted colossal loss to national exchequer.
Subsequently, data of the four aforesaid GDs was retrieved from PRAL’s online system and found that the four consignments had been cleared unlawfully as industrial manufacturer through MCC Appraisement-East. The amount of evaded tax had been worked out to Rs 399,323 as Additional Sales Tax and Rs 407,310 as Income Tax, which makes the total amount equal to Rs 806,633.
It was also found that the Importer M/s Pioneer Textile has violated the provision of Section 32(1)&(2) of the Customs Act, 1969, read with Section 3, 4, 6, 7A, 8(1b), 34, 36 and 71 of the Sales Tax Act, 1990, read with Section 148 of the Income Tax Ordinance, 2001 punishable under clauses (14) of Section 156(1) of the Customs Act, 1969, read with the Section 33 & 34 of the Sales Tax Act, 1990.
The Collectorate of Customs Adjudication-II has summoned the importer on June, 2 at 12:30 for hearing.
