KARACHI: Additional Deputy Collector Shafique Latki, Collectorate of Customs Adjudication-II, has served a show-cause notice on M/s Warre Wala & Company for tax and duties evasion of Rs 1,001,922 on import of aerosol spray paints, it is learnt.
According to the show-cause notice says: “Whereas the Directorate of Post Clarence Audit (Customs), Customs House, Karachi vide its contravention report No PCA/4394/2016- Audit- 12198 dated 30-06-2016 reported a case involving taxes/duties evasion. The amount of duties/taxes involved stand at Rs 1,011,922 which comes under the ambit of violations of provisions of Section 32(1)32 (2) & 32 (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 6 & 33, 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Sections 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7A 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.”
And whereas, M/s Warre Wala & Company imported ten consignments of aerosol spray pools under PCT Heading 3208.9090 paying customs duty @ 12.5% alter claiming benefit of SRO 659(1)12007 dated 03.06.2007. However, the subject goods arc correctly classifiable under PCT 3208.2090 attracting customs duty @ 20% sales tax @ 17%, additional sales tax @3 % and income tax @ 6%. Thus, by way of mis-declaration of classification, M/s Warre Wala & Company. Karachi, has evaded/short paid Rs 1,001,922/.
Therefore, the importer has violated the provisions of Section 32 (1) 32 (2) & 32 (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1). and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7A 01 150 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.
Hearing in this is fixed for 5.9.2016 at 11am. The importer may submit written reply if any. The importer may also appear in persons or through their accredited representative on the stipulated date and time. In case no one appears on behalf of the importer or no written reply is received by the date, the case will be decided ex-parte on its merits as per available records.
