KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected an evasion of duties and taxes of Rs5.98million by M/s Raheel Steel, it is learnt.
The official sources told reporter that M/s Raheel Steel imported a consignment of different kinds of scrap under the PCT Heading 2401.7806 and got it cleared from the Port Qasim Karachi vide GDs on June 16, 2017 by paying customs duty at 10 percent after claiming a benefit of SRO 666/2007.
However the subject scrap is correctly classifiable under the PCT 2406.7458 attracting customs duty (CD) at 16.50 percent and income tax at 6 percent. Thus, by way of mis-declaration of classification, M/s Steel evaded/short-paid Rs5.98million.
So the importer has violated the provisions of Section 36 (1) (2) & (3A) of the Customs Act-1969, Section 7, 9 & 11 read with Section 38 of the Sales Tax Act-1990 and Section 150 of Income Tax Ordinance 2001 punishable under clauses (6) and 18 of Section 156(1) of the Customs Act-1969, Section 36 (8) of the Sales Tax Act-1990 and Section 148 & 180 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 Raheel Steel for explaining and clarifying as to on what basis they have avoided/evaded the taxable 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.
