KARACHI: The Directorate General of Post Clearance Audit has detected tax evasion of over Rs 250,552 by M/s Mohammad Ishaq and Sons on import of un-coated polyester film (milky white).
The company evaded the tax by availing undue benefits of SRO 659(I)/2007, while an audit observation has also been issued to the importer.
According to the details, during audit of import clearance made under different concessionary SROs, it has been found that M/s Muhammad Ishaq imported a consignment by mis-declaring goods under PCT Heading 3920.6310, and availed the benefit of SRO 659(I)/2007 dated August 30, 2007, whereas the goods are correctly classifiable under PCT Heading 3920.6200 on which concessionary rate of duty/taxes is not available under SRO 659(I)/2007 dated August 30, 2007.
In an identical import made by the other importers, assessing group has categorically rejected the declared PCT heading i.e. (3920.6310) as well as claim of concessionary rate of customs duty at 5 percent under SRO 659(I)/2007, on the ground that the imported items i.e. uncoated polyester film (milky white) is correctly classifiable under PCT 3920.6200 chargeable to customs duty at 20 percent, sales tax at 17 percent and WHT at 6 percent.
It is, therefore, clear that M/s. Muhammad Ishaq with active involvement of its clearing agent M/s Jaffery Marine Enterprises has wilfully and knowingly mis-declared the imported goods under PCT heading 3920.6310 in order to avail the concessionary rate of duty taxes.
Therefore, M/s Muhammad Ishaq & Sons Karachi is advised to pay the evaded taxes/duties.
