KARACHI: The Collectorate of Customs Adjudication-I has served a show cause notice on the importer M/s Agro Processors and Atmospheric Gases (Private) Limited due to its alleged tax evasion of Rs 17.4 million under the head of customs duty, sales tax and income tax.
The Collector of Customs Adjudication-I Abdul Basit Chaudhry has called upon the importer M/s Agro Processors and Atmospheric Gases on May 24, 2016 at 11.3am for a hearing.
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In the show cause notice, the collector said that the respondent may appear in person or through his authorized representative in the office of the Collector of Customs (Adjudication-I) to defend the charges leveled against him.
He further added if no reply to the show cause notice is received or no one appear on the aforesaid date and time, it shall be presumed that the respondent does not want to defend the charges and the case shall be decided on the basis of available record.
According to details, it has been reported by the Directorate of Post Clearance Audit (PCA) vide its Contravention Report (CR) that during scrutiny of importer data relating to claiming of concessions of CD accorded vide notification SRO450(I)/2001, it was found that the M/s Agro Processors & Atmospheric Gases (Pvt) Ltd has imported consignment of “RBD Palm Olien” vide GD nos KPQI-HC-319 under PCT Heading 1511.9030 through Port Muhammad Bin Qasim and had illegally availed the benefit of concessionary rate of CD, ST amd IT under the aforesaid notification and as there is no mention on the GDs regarding any other information for the subject clearance of goods without payment of CD, ST and IT.
The imported item “RBD Palm Olien” are not covered under the said SRO by description, therefore, CD, ST and IT are leviable at standard rates.
Whereas, an amount of Rs17428694 has been short paid/evaded on account of customs duty, sales tax and income tax therefore, M/s Agro Processors & Atmospheric Gases (PVT) Ltd has violated the provisions of Section 32(1), (2) and 3A of the Customs Act, 1969; Sections 3(1), Sections 3,6 & 7 read with Section 34 of the Sales Tax Act, 1990 of the Customs Act, 1969, Section 33(5) and Section 7A if 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.
In view of the aforesaid, M/s Agro Processors & Atmospheric Gases (PVT) Ltd are held to have intentionally and willfully caused loss to the national exchequer amounting to Rs17,428,694 by illegally availing the benefit of SRO450(I)/2001, which was evidently not admissible to them at the time of import.
In the light of above reported facts, the importer M/s Agro Processors & Atmospheric Gases (PVT) Ltd are called upon to show-cause as to why short paid/evaded amount of duty and taxes amounting to Rs17,428,694 shall not be recovered from them and penal action as warranted under the above mentioned provisions of law may not be taken against them.
