KARACHI: The Directorate General of Customs Intelligence and Investigation–Enforcement, Federal Board of Revenue (FBR) -Karachi region has seized consignment of ‘skimmed milk powder’ for claiming zero rated exemption in violation of law.
As per details, M/s Irfan brothers, Peshawar, imported a consignment of skimmed powder weighing 25 MT from India. However, the director general of the Customs Intelligence and Investigation (Customs –Enforcement) reexamined the consignment in presence of witnesses and found 25 MT Indian origin skimmed milk spray (dried), having brand name ‘Madhusudan’ in various packings.
It has been observed that the importer unlawfully and illegally claimed zero rated exemption of sales tax under 6th schedule of sale tax act 1990 which was accordingly extended by the customs assessing staff despite the fact that the said exemption is not available to skimmed milk powder (HS code 0402-1000) that is sold in retail packing under a brand name. In the instant case, the skimmed mill powder of Madhusudan, in retail packing of 1 kilogram, has been liable to standard rate of sales tax.
Thus, it has established without any shadow of doubt that the above named importer in collusion with customs assessing staff have unlawfully and illegally claimed/availed zero rated exemption of sales tax udder 6th schedule of STA 1990 and custom act 1969 for violation of section 32(1) 32 (A).
In the absence of the importer and clearing agent notice under section 148(1) of the Income Tax Ordinance 1969 is served upon the Terminal Operator PICT Karachi. The seized consignment is given in the ‘superdari’ of the terminal operator PICT Karachi for safe custody with the direction not to deal, with part, with remove, deliver or release the said consignments without prior written permission from the DG.
