KARACHI: The Collectorate of Customs Adjudication-II Karachi has issued an Order-in-Original (ONO) against M/s Imdad Cloth House Lahore for evading duty/taxes to the tune of Rs 498,498 by taking undue benefits under SRO 1125(I)/2011 dated 31.12.2011.
According to details, the Directorate of Post Clearance Audit (PCA), Customs Karachi, while scrutinizing data of importers, found that the importer had illegally availed the benefits of concessionary rates under aforesaid SRO.
In the ONO, the Deputy Collector Customs Adjudication-II Muhammad Aftab stated that the importer M/s Imdad Cloth House intentionally and wilfully caused loss to the government exchequer by availing benefits of SRO 1125(I)/2011 dated 31.12.2011 which was evidently not admissible to them at the time of imports.
The ONO further states that the show-cause notice was issued to the importer whereby hearing was fixed for June 22, 2015. However the representative of importer namely Syed Imran failed to submit any documents about deposition of evaded amount.
In the ONO, the Deputy Collector-Adjudication-II directed the importer to pay the evaded revenue of Rs 498,498. However, in addition, a fine of Rs 25,000 was also imposed for violation of Provision of Section 32(1)(2) and (3A) of the Customs Act, 1969, Section 3(1), section 3,6, and 7 read with section 34 of Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under Section 33 (5) and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Act Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importer) and punishable under relevant provision of Income Tax Ordinance 2001 under clauses (14) and (14A) of Section 156(1) of Customs Act, 1969 on the exporter.
