KARACHI: Collectorate of Customs Adjudication-I Collector Dr Wasif Memon has issued an Order-in-Original against M/s JSK Feeds Limited for evading duties and taxes to the tune of Rs 5.83 million on import of silos classifiable under PCT Heading 9406.0030. A penalty of Rs 200,000 has also been imposed on the importer.
The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the PCA Directorate.
According to details, the importer M/s JSK Feeds Ltd had imported silos from China dated January 8, 2015. The importer 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 silos is for storage purposes and do not qualifies the definition of machinery and equipment, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to sales tax at 17 percent.
After hearing both the sides, the Collector Adjudication-I has directed the importer to pay the evaded amount besides a penalty of Rs 200,000 has also been imposed.
