KARACHI: The Collectorate of Customs Adjudication-I has issued an Order-in-Original (ONO) against Shoaib Feed Industry, IJ Feed Limited and Arslan Floor Mills for allegedly evading duty/taxes collectively amounting to Rs 18 million on silos’ import.
According to ONO issued, the adjudication imposed fine of Rs 1.7 million on the importers. The tax evasion was detected by the Post Clearance Audit (PCA) on the import of silos through mis-classification.
The ONO further stated that the importers availed concession of 8th Schedule (Sales Tax) and paid reduced rates of sales tax at 5 percent on the import of “grain storage silos with all standard accessories” under PCT Heading 9406.0030.
The 8th Schedule (Sales Tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the Silos are for storage purposes and do not qualifies the definition of machinery and equipment.
