KARACHI: Directorate General of Post Clearance Audit Customs Karachi has detected another case of evasion of duty/taxes worth Rs 4,263,429 by M/s ZK Impex as the company availed benefits of SRO 1125(I)/2011 against the law, it is learnt.
M/s ZK Impex imported 10 consignments of belts strips/ composition leather under PCT Heading 4115.1000 on payment of reduced rate of sales tax, additional sales tax and corresponding income tax by mis-declaring the goods under PCT Heading 4115.1000 and availed the benefits of SRO 1125 (I)/2011 dated 31-12-2011 illegally. However, the subject goods are correctly classifiable under PCT 4203.3000 attracting customs duty @ 20% sales tax @ 17%, additional sales tax @3 % and income tax @ 6%.
Thus, by way of mis-declaration of classification, M/s Z.K. Impex, Sialkot evaded/short paid Rs 4,263,429. Therefore, the importer, has violated the provisions of Section 32 (1) (2) & (3-A) 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 7-A 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 Z.K. Impex, Sialkot, for explaining and clarifying as to on what basis they have avoided/ evaded the leviable duty and 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.
In view of the aforesaid M/s Z.K. Impex, Shop No. 71, Basement Sethi Plaza, Allama Iqbal Chowk, Railway Road, Sialkot, are held to have intentionally & willfully caused loss to the government exchequer amounting to Rs. 4,263,429. The contravention report is forwarded for initiation of adjudication proceedings in the case.
