KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duty and tax evasions of Rs 12.58 million allegedly by M/s Yousuf Mustafa Ceramics, it is learnt.
Official sources told Customs Today that M/s Yousuf Mustafa Ceramics imported a consignment of different kinds of sanitary items under the PCT Heading 2584.4478 and got it cleared from the Port Qasim Karachi vide GDs on October 30, 2017 by paying customs duty at eight percent after claiming a benefit of SRO 567/2007 through Examiner Imran A Khan.
However, the subject item is correctly classifiable under the PCT 2548.2509, attracting customs duty at 12 percent and income tax at 114 percent. So by doing mis-declaration of classification, M/s Yousuf Mustafa Ceramics evaded to pay Rs 12.58 million.
So the importer has violated the provisions of Section 48 (6) & (3B) of the Customs Act-1969, Section 6, 9 read with Section 58 of the Sales Tax Act-1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (5) and 48 of Section 159(5) of the Customs Act-1969, Section 30 (4) of the Sales Tax Act-1990 and Section 138 & 147 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 the Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Yousuf Mustafa Ceramics for explaining and clarifying as to on what basis they have avoided/evaded the taxable duties and taxes.
