KARACHI: The Collectorate of Customs Adjudication-II has issued an Order-in-Original (ONO) against M/s Iqbal and Co Karachi for evading duty/taxes to the tune of Rs 368,823 by taking undue benefits under SRO 1125(I)/2011.
According to details, the Directorate of Post Clearance Audit (PCA), Customs Karachi, while scrutinizing the data of importers regarding the claiming of admissible/inadmissible concessions in taxes, found that the importer had illegally availed the benefits of concessionary rates under the aforesaid SRO.
In the ONO, Deputy Collector Customs Adjudication-II Muhammad Aftab stated that the importer M/s Iqbal and Co intentionally and willfully 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 in which the importer imported consignment of Carpet Yarn.
Accordingly show cause notice was issued to the importer and hearing in this case was fixed for 03.06.2015. However, the show cause notice to the importer as well as clearing agent returned whereby the courier reported regarding importers that office is permanent closed. The address of the importer was again confirmed as per details provided on the FBR website online inquiry and hearing notices were issued to the importer on 11.06.2015 and 18.06.2015.
Muhammad Khalid, representative of the importer appeared for hearing and requested for adjournment in the case as the importer had left for Umra. However after that no one bothered to appear to follow the case.
In the ONO, the deputy collector Adjudication-II directed the importer to pay the evaded revenue of Rs 368,823. However, in addition, a penalty of Rs 100,000 is 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.
