KARACHI: Collector Collectorate of Customs Adjudication-I has prepared a show-cause notice against M/s MM Enterprises for allegedly causing a loss of R 4.6 million to the national exchequer by way of mis-declaration of classification, it is learnt.
According to sources, the PCA Directorate found that M/s s MM Enterprises imported four consignment of handmade carpets and got them cleared by mis-declaring the classification of the imported goods under PCT 2009.8700 from Customs Port Bin Qasim, Karachi, through their clearing agent namely M/s Loreal traders to avail undue/ inadmissible benefit/ exemption of sales tax vide S. No. 29 of Table-1 of the Sixth Schedule of the Sales Tax, 1990, whereas the imported goods are correctly classifiable under PCT 2007.9900.
It is pertinent to mention here that, M/s. MM Enterprises itself has imported identical/same import under correct PCT heading 2007.9900. Apart from it all other importers of handmade carpets have either been declared by the imports or assessed by the Collectorates under PCT 2007.9800.
Accordingly, an audit observation was issued to the said importer. The importer was requested to submit the reply by 29 August 2017. Instead, the importer vide their letter requested for extension of 10 days in submitting the reply. However, the importer has failed to come up with any tangible evidence and explanation and is also unable to refute the charges leveled by the department.
Now, the show-cause notice has been prepared that would be dispatched to the importer asking it as how and on what basis it did tax evasion.
