MULTAN: Customs Intelligence and Investigation Multan Range office has found another tax evasion of Rs 831, 232 in the imported parts of industrial oven against SM Food Makers Company during investigation.
Customs Intelligence and Investigation Multan had detected tax evasion of Rs 4.7 million against Saim Mobeen Food Makers Company through under invoicing on the import of Varbon steel sheets on dated 20-6-2014. Saim Mobeen food makers company is registered as manufacturer, importer and wholesaler in Regional Tax Office Multan .Customs Intelligence and Investigation Multan has learnt through their sources that the actual transaction value of imported goods between supplier Berndorf Band GMBH Austria and Saim Mobeen Food Maker was euro 120,700/- whereas Saim Mobeen Food Maker have forged the actual invoice value declaring transaction value as euro 12,700/-.The allegations of under invoicing against S.M Food Makers Company were proved to be true as evident in the Order in Original No.167/2015 given by Collector Adjudication Saleem Ahmad Ranjha in the seizure case no.37/2014
Customs Intelligence and Investigation has found that in the course of investigation of seizure case no.37/2014, S.M Food Makers had got cleared the industrial parts of oven including stainless steel belts committing under invoicing during the period 2012-2013 from MCC Appraisement, Karachi. Customs Intelligence and Investigation Multan has scrutinized the import record provided by the Additional Collector –I, MCC Appraisement (West) with regard to import of similar products.
During investigation of import documents it reveals that importer S.M Food Maker imported carbon steel sheets, carbon 13 (parts of Industrial oven) and declared unit transaction value as euro 3/ per kilogram. At the time of import the invoice was missing and the importer S.M Food Makers was imposed Rs.5000/-penalty on the violation of Rule389 of the customs Rules,2001. Import consignment was assessed by the Customs staff 3.6/kilogram against the value of Rs 223133/- and on the basis of assessment Rs 142083/- of duty taxes was paid.
On comparing the GD No MDRY-HC-121 dated 20-6-2014 in which S.M Food Makers has forged the actual invoice of euro 120700/- has been recovered against declared value of euro 12700/- with GD No. KAPR-HC-72873 dated 9-1-2012 .It was revealed that the same item carbon steel sheets carbon- 13 has been imported by S.M Food Maker from the same supplier Berndorf Band GMBH Austria. After the comprehensive investigation of import record of S.M Food Maker that actual transaction value had also been concealed in the previous import.
Based on the facts S.M Food Makers have forged the transaction value comes to the tune of Euro 25.06 /Kilogram as in the identical case 37/2014 S.M Food Makers have also claimed the value of 3/per kilogram instead of actual value comes to the tune of Euro 25.06/kilogram as GD No MDRY-HC-121 .
It is worth revealing that importer S.M Food Maker have never made payments through banking channels to their foreign suppliers as it is evident through bank transactions and statements available on record. Customs Investigation and Investigation Multan found that S.M Food makers have been manoeuvring to conceal the actual invoices shipped by the foreign suppliers .It is also established with facts that invoices shipped by the foreign suppliers at the time of import along with shipments are not found in most of the cases.
Saim Mobeen Food Maker Company have committed pre-planned fiscal fraud so they did not provide actual invoices at the time of import clearance at Karachi Sea Port.
Multan Customs Intelligence and Investigation Multan Range Office have found that S.M Food Makers evaded customs duty of Rs 4, 03,480/- sale tax Rs 140410 as Income tax total Rs 831,232/-.It is pertinent to mention that S.M Food Makers have already paid customs duty of Rs 59395/- ,sales tax of Rs 57018/ and Rs 20670 as income tax.
The remaining amounts of the evaded taxes are Customs duty Rs 403,480/- as sales tax of Rs 387,342 /- and Rs 140,410 /- as income taxes are still recoverable from S.M Food Makers company.
Customs Intelligence and Investigation Multan has formed the contravention report under Section 18 ,32 32A of the Customs Act 1969 punishable under section [ 156(1) ,1,9,14& 14_A] raed with section 3(1) 3 of import and export act 1950 against S.M Food Makers Owner Chaudhry Zulfiqar Ali Anjum,Manager Waseem Shehzad and Clearing agent Muhammad Shahzad and others.
The contravention report no.08/2015 has been sent to the Customs Adjudication for further proceeding of the case.
