KARACHI: The Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs 9.34 million by M/s Aisha Garments Karachi, it is learnt.
The official sources told Customs Today that M/s Aisha Garments imported a consignment of different kinds of colour chemicals and white silk from Japan under the PCT Heading 2209.3408 and got it cleared from the Port Qasim Karachi vide GDs on July 29, 2017 by paying customs duty at 12 percent after claiming the benefit of SRO 717/2007.
However, the subject items are correctly classifiable under the PCT 2206.3467 attracting customs duty at 16 percent and income tax at 14 percent thus by way of mis-declaration of classification, M/s Aisha Garments Karachi evaded/short-paid Rs 9.34 million.
So the importer has violated the provisions of Section 36 (1) (3) & (6A) of the Customs Act-1969, Section 12, 7 & 22 read with Section 48 of the Sales Tax Act-1990 and Section 158 of Income Tax Ordinance 2001 punishable under clauses (26) and 24 of Section 138(6) of the Customs Act 1969, Section 46(6) of the Sales Tax Act-1990 and Section 159 & 142 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 Aisha Garments Karachi 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.
