KARACHI: The Collectorate of Customs Adjudication-II has issued an Order-in-Original against M/s Abbas Enterprises for availing illegal benefits of concessionary rates of sales tax and income tax under SRO 1125(I)/2011 dated 31.12.2011.
According to details, the Directorate of Post Clearance Audit, Customs Karachi, while scrutinizing the data of importers relating to claiming of admissible/inadmissible concessions in taxes, found that the importer had illegally availed the benefits of concessionary rates under aforesaid SRO.
In the ONO, the Deputy Collector Customs Adjudication-II Muhammad Aftab stated that the importer M/s Abbas Enterprises held to have intentionally and willfully caused loss to the government exchequer amounting to Rs 222,173 by illegally availing benefits of SRO 1125(I)/2011 dated 31.12.2011 which was evidently not admissible to them at the time of imports.
The ONO stated the importer had paid the evaded amount of duty/taxes on account of sales tax Rs 211,593 and withholding tax of Rs 10,580. The submission of the evaded amount of duty/taxes is an admission on the part of the importer of the charges leveled in the show cause. No further query is required to be answered in the case.
However, as the goods have already been released, no redemption fine can be imposed on the importer as a consequence of confiscation. The importer has already paid the evaded amount of taxes.
However, in addition, a penalty of Rs 100,000 is imposed upon the importer for violation of Provision of Section 32(1)(2) & (3A) of the Customs Act, 1969, Section 3(1), section 36 read with section 34, 36 (1)(2) of Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under clauses (1)(9) and 14 of Sections 156(1) of the Customs Act, 1969, punishable under section 33(5) and 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Act Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importer) and punishable under relevant provision of Income Tax Ordinance 2001.
