KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs7.14 million by M/s Malik Steel Works, Hyderabad.
Sources told Customs Today that M/s Malik Steel Works, Hyderabad located near Gari Khatta imported a consignment of steel manufacturer accessories including steel rods and got it cleared from QICT Karachi vide GDs on December 16, 2018 by paying customs duty low at 8 percent after claiming the benefit of the SRO 569/2007.
However, the subject items were correctly classifiable under the PCT 3698.2507 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs7.14 million. The goods were cleared by Examiner Waseem Ghafoor Ali.
Sources told that the importer violated the provisions of Section 56 (7 and 9-A) of the Customs Act-1969, Section 36 read with Section 21 of the Sales Tax Act-1990 and Section 69 of Income Tax Ordinance 2001 punishable under clauses (214) of Section 48(3) of the Customs Act-1969, Section 27 of the Sales Tax Act-1990 and Section 39 of Income Tax Ordinance 2001 and Section 9-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. Source told that during the month of Ramadan PCA will investigate only 15 cases.
