KARACHI: The Sindh High Court (SHC) issued notices to customs department and deputy attorney general on a petition filed by M/s Telenor Pakistan Private Limited against demand notice for extra duties and taxes on import on HP Server for Easypaisa portfolio. On October 19, 2018, a two-member bench, headed by Justice Aqeel Ahmed Abbasi heard the matter.
During the hearing, counsel for the petitioner stated in its petition that petitioner imported HP Server for Easypaisa Portfolio. Later an audit observation dated 19/07/2016 was served to petitioner falsely accusing the petitioner for clearing imported ‘servers for telecommunication use’ by misclassifying under PCT heading 8471.5000 as servers for computers, paying CD @ 0%, 1% & 2% instead of classifying under PCT heading 8517.6990 (other machines for the transmission or reception of voice, image or other dated, including switching and routing apparatus) attracting CD @20% hence short paid amount of Rs1,317,687/- (CD Rs1,040,827, sales tax Rs176,940 additional sales tax Rs34,225 and income tax Rs68,695).
Counsel argued that petitioner rebutted the audit observation and filed a detailed written reply dated 09/08/2016, explaining how servers are classifiable under PCT heading 8471.5000, being purely data processing machines and having no function of networking as claimed by the audit department and that the audit observation is based on a misunderstanding of the equipment due to which there is a mis-interpretation of classification of goods.
Citing Chairman Federal Board of Revenue, Collector of Customs Appraisement Air Freight Unit/ JIAP, Karachi and Deputy Collector of Customs Appraisement Air Freight Unit/ JIAP as respondents, he pleaded the court to suspend the operation impugned demand notice and restrain them from taking any coercive action against the petitioner till final order in this case.
