KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 9.75 million allegedly by M/s Junaid Ilyas and Company, it is learnt.
The official sources told Customs Today that M/s Junaid Ilyas and Company imported a consignment of food essence and different kinds of food colours under the PCT Heading 2405.3408 and got it cleared from the Port Qasim Karachi vide GDs on September 19, 2017 by paying customs duty at 12 percent after claiming a benefit of SRO 566/2007 by the hand of Appraiser Ghulam Mujtaba and Appraiser Kamran Ghori.
However, the subject item is correctly classifiable under the PCT 2407.5609 attracting customs duty at 12 percent and income tax at 16 percent. Thus, by way of mis-declaration of classification, M/s Junaid Ilyas and Company evaded/ short-paid Rs 9.75 million.
So the importer has violated the provisions of Section 34 (3) (7) & (8B) of the Customs Act-1969, Section 6, 9 & 18 read with Section 66 of the Sales Tax Act-1990 and Section 159 of Income Tax Ordinance 2001 punishable under clauses (7) and 22 of Section 167(8) of the Customs Act-1969, Section 22 (8) of the Sales Tax Act-1990 and Section 147 & 185 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 Junaid Ilyas and Company for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.
