KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected an evasion of duties and taxes of Rs 8.98 million allegedly by M/s Zaheer Garments, it is learnt.
The sources told Customs Today that M/s Zaheer Garments imported a consignment of color chemicals and silk fabrics under the PCT Heading 2401.8702 and got it cleared from the Port Qasim Karachi vide GDs on June 12, 2017 by paying customs duty at 10 percent after claiming a benefit of SRO 629/2007.
However, the subject scrap is correctly classifiable under the PCT 2409.8204 attracting customs duty (CD) at 12.50 percent and income tax at 18 percent. Thus, by way of mis-declaration of classification, M/s Zaheer Garments evaded/ short-paid Rs 8.98 million.
So the importer has violated the provisions of Section 50 (1) (6) & (8B) of the Customs Act-1969, Section 7, 9 & 16 read with Section 42 of the Sales Tax Act-1990 and Section 154 of Income Tax Ordinance 2001 punishable under clauses (9) and 20 of Section 160(1) of the Customs Act-1969, Section 38 (8) of the Sales Tax Act-1990 and Section 147 & 186 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 Zaheer Garments 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.
