KARACHI: Directorate of Post Clearance Audit (PCA), Karachi Directorate has detected massive tax evasion of duty/taxes to the tune of around Rs 18 million allegedly by M/s Packages (Private) Limited.
In this regard, a contravention report under Section 26 and 32 of the Customs Act, 1969 regarding short-payment/evasion of duty/taxes has also been issued to the importer as well as to the collectorate of Customs Adjudication for initiating proceedings against the importer and the clearing agent.
According to details, during the audit of import clearances made under different concessionary SROs, it has been found that M/s Packages Ltd have imported 6 consignments of plain polyster film 12 micron outside corona by misdeclaring the goods under PCT Heading 3920.6310 in order to avail the benefit of SRO 659(I)/2007 dated 30.8.2007 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 30.8.2007.
In an identical import made by the same importer 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 dated 30.8.2007 on the grounds that the imported items is chargeable to customs duty at 20 percent, sales tax at 17 percent and withholding tax at 5.5 percent.
It is therefore, clear that M/s Packages Limited with active involvement of their clearing agent M/s Ijaz and Sons has willfully and knowingly mis-declared the imported goods under PCT heading 3920.6310 in order to avail the concessionary rate of duty taxes of custom duty at 5 percent, sales tax at 17 percent and withholding tax at 5.50 percent and to avoid payment of actually leviable duty/taxes.
In view of above, M/s Packages Ltd by mis-declaring the classification and availing inadmissible exemption/concession under SRO 659(I)/2007 dated 30.8.2007 have evaded/short paid duty and taxes to the tune of Rs 17,826,766.
Therefore, M/s Packages Ltd are required to pay the evaded amount of duty/taxes at the earliest.
