Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Karachi

Show-cause notice served on Muller and Phipps for tax evasion of Rs 2.323m

byAftab Channa
24/03/2016
in Karachi, Latest News
Share on FacebookShare on Twitter

KARACHI: Collector, Collectorate of Customs Adjudication-I Abdul Basit Chaudhary, has issued a show-cause notice against M/s Muller and Phipps (Private) Limited for tax evasion of Rs 2.323 million by taking inadmissible benefits under SRO 1125(I)/2011.

According to details, while scrutinizing data of the importer, the PCA Karachi found that M/s Muller and Phipps imported consignments of latex surgical gloves powdered and availed illegally benefits of concessionary rate of sales tax and income tax.

You might also like

Electricity price may rise as Discos seek extra fuel cost charge

18/04/2026

Pakistan returns to global markets with $500m Eurobond after four years

18/04/2026

It may be mentioned here that the concessions offered vide SRO 1125(I)/2011 dated 31.12.2011 are only admissible to manufacturers of goods covered in the five sectors only as highlighted in the conditions given in the said notification. Furthermore, the imported item Latex Surgical Gloves is a consumable item used for different general purposes like examination of patients by the doctors, dentists and by compounders in the hospitals. Therefore, item is not covered under the description of Surgical Goods. The importers were required to pay sales tax at 17 percent and income tax at 5 percent instead of 1 percent.

It transpired that the status of M/s Muller and Phipps is that of an importer/exporter/retailer and the concern was not registered as a manufacturer at the time of subject imports.

Therefore, an amount of Rs 2,323,646 has been short paid/evaded by the importers on account of paying concessionary rate of sales tax and withholding income tax otherwise not admissible to them.

Hence, M/s Muller and Phipps violated the provisions of Section 32(1)(2) and (3A) of the Customs Act, 1969, Sections 3(1), section 3, 6, & 7 read with section 34 of Sales Tax Act, 1990 and Income Tax Ordinance 2001 punishable under clauses (1), (9) and 14 of Section 156 (1) of the Customs Act, 1969, punishable under Section 33(5) and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Special procedure rules 2007 (special procedures for payment of sales tax by the importers) and punishable under the relevant provisions of Income Tax Ordinance 2001.

Accordingly, the collector, has issued a show-cause notice to the importer to justify the claim within a week else the matter would be decided ex parte.

Related Stories

Electricity price may rise as Discos seek extra fuel cost charge

byCT Report
18/04/2026

ISLAMABAD: Electricity consumers may face higher power bills starting in May, as power distribution companies have requested the national energy...

Pakistan returns to global markets with $500m Eurobond after four years

byCT Report
18/04/2026

ISLAMABAD: Pakistan has re-entered the international financial market after a gap of four years by successfully issuing a $500 million...

Faisalabad Customs promotes EFS to boost efficiency: Collector Dr. Rizwan Basharat

byCT Report
18/04/2026

FAISALABAD: Officials from Pakistan Customs have urged exporters to fully utilise the Export Facilitation Scheme (EFS), highlighting that businesses at...

Aurangzeb advance economic diplomacy, engages global partners in Washington

byCT Report
18/04/2026

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, concluded final day of IMF-WB Spring Meetings in Washington. He...

Next Post

Customs Adjudication issues notice to PIA for allegedly evading Rs 25m

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.