KARACHI: The Collectorate of Customs Adjudication-I has issued an Order-in-Original (ONO) No 147/2014-15 asking M/s Ahsan Feed Mills Gujranwala to deposit the short-paid amount of Rs 0.54m sales tax on Silos’ import.
According to ONO issued by Deputy Collector, Adjudication-I, Amanullah Soomro, a fine of Rs 25,000 has also been imposed on the importer additional for his importing silos through mis-clasification. The ONO says the evasion of sales tax was found during the scrutiny of import data pertaining to Silos by the PCA Directorate. The importer M/s Ahsan Feed Mill had imported Silos from China dated March 4, 2015.
It further states the importer M/s Ahsan Feed Mill availed concession of 8th Schedule (Sales Tax) and paid reduced rates of Sales Tax at 5 percent on the import of “Grain Storage Silos with all standard accessories” under PCT Heading 9406.0030.
The 8th Schedule (Sales Tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the Silos are for storage purposes and do not qualifies the definition of machinery and equipment.
Therefore, the importer violated the benefits of reduced rate of Sales Tax was not admissible in this case and was chargeable to Sales Tax at 17 percent. The hearing notices were issued to the importer however no one turned up to justify the concessions availed by the importer.
Hence, the importer M/s Ahsan Feed Mills is directed to deposit the short-levied amount with Rs 25,000 as fine at the earliest.
