KARACHI: The Collectorate of Customs Adjudication-II, Karachi has issued an Order-in-Original (ONO) against M/s Al-Riaz and Sons for evading duties and taxes by taking undue benefits under SRO 1125(I)/2011.
According to the details, the Directorate of Post Clearance Audit, Customs Karachi, while scrutinizing the data of importers relating to to the admissible/inadmissible concessions in taxes, found that the importer had illegally availed the benefits of concessionary rates under aforesaid SRO.
In the ONO, Deputy Collector Customs Adjudication-II, Muhammad Aftab stated that the importer M/s Al-Riaz and Sons was held to have intentionally and will fully caused loss to the government exchequer by 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 further states that the show cause notice was issued to the importer whereby the courier reported that importer’s office is closed permanently. The address of the importer was again confirmed as per the detail provided on FBR website. Online inquiry and hearing notices were issued to importer on 28.5.2015 whereby the copy of the same was displayed on the notice board of the Customs House Karachi under Section 218 of the Customs Act, 1969. However despite repeated efforts, no one appeared on behalf of importer.
In the ONO, the deputy collector directed the importer to pay the evaded revenue of Rs 620,355. However, in addition, a penalty of Rs 100,000 is also imposed for violation of Provision of Section 32(1)(2) & (3A) of the Customs Act, 1969, Section 3(1), section 3,6,&7 read with section 34 of Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under Section 33 (5) and section 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 under clauses (14) and (14A) of Section 156(1) of Customs Act, 1969 on the exporter.
