KARACHI: Collector, Collectorate of Customs Adjudication-I, Dr Wasif Memon has issued an Order-in-Original against M/s Pak Agro Oil Mills evading Rs 1.97 m duties/taxes on silos import classifiable under PCT Heading 9406.0030. A penalty of Rs 200,000 has also been imposed on the importer.
The evasion of sales tax was found during the scrutiny of the data pertaining to the silos import by the PCA Directorate.
According to details, importer M/s Pak Agro Oil Mills had imported Silos from Turkey and 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 equipments, sources added.
Therefore, the sources said that the benefits of reduced rate of Sales Tax was not admissible in this case and was chargeable to Sales Tax at 17 percent.
After hearing both the sides, the Collector Adjudication-I has advised the importer to pay the evaded duties/taxes besides a penalty of Rs 200,000 is also imposed on the importer.
