KARACHI: The Directorate of Post Clearance Audit, Karachi, has detected evasion of duties/taxes of Rs 411,186 by M/s Kukda Services on import of highlighters by claiming illegal benefits of SRO 549(I)/2008, it is learnt.
The customs official told Customs Today that M/s Kukda Services imported two consignments of highlighters under PCT Heading 9608.2000 by claiming incorrect/ inadmissible exemption of SRO 549(I)/2008-4(XXXIII)-11/06/2008, serial no. 30 of SRO 501 (I)/2013 paying sales tax and Additional sales tax @ 0%. However, the subject goods are correctly classifiable under PCT 9608.2000 attracting customs duty @ 20% Sales Tax @ 17%, Additional Sales Tax @3 % and Income Tax @ 6%, as the subject goods are not covered under the claimed SROs/Exemptions.
Thus, by way of misdeclaration of classification, M/s Kukda Services evaded/short paid Rs 411,186. Therefore, the importer, has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 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 under relevant provisions of Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Kukda Servicesfor explaining and clarifying as to on what basis they have avoided/ evaded the leviable taxes. The importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the Department.
