KARACHI: Collector Customs Adjudication-I, Abdul Basit Chaudhary, has issued a show-cause notice to M/s Mohammad Ishaq and Sons for tax evasion of over Rs 250,552 by availing undue benefits of SRO 659(I)/2007 on import of uncoated polyester film (milky white). And, an audit observation has also been issued to the importer.
According to details, during audit of the import clearances made under different concessionary SROs, it has been found that M/s Muhammad Ishaq and Sons imported a consignment of uncoated polyester film (milky white) by mis-declaring goods under PCT Heading 3920.6310, and availed the benefit of SRO 659(I)/2007 dated 30.08.2007, whereas the goods are correctly classifiable under PCT Heading 3920.6200 on which concessionary rate of duty/taxes is not available under SRO 659(I)/2007 dated 30.08.2007.
In an identical import made by the other importers, assessing group has categorically rejected the declared PCT heading i.e. (3920.6310) as well as claim of concessionary rate of Customs Duty @ 5% under SRO 659(I)/2007 dated 30.08.2007, on the ground that the imported items i.e. uncoated polyester film (milky white) is correctly classifiable under PCT 3920.6200 chargeable to Customs Duty @ 20% Sales Tax @ 17% and WHT @ 6 %.
It is, therefore, clear that M/s. Muhammad Ishaq & Sons, Karachi with active involvement of their Clearing agent M/s Jaffery Marine Enterprises has willfully and knowingly misdeclared the imported goods under PCT heading 3920.6310 in order to avail the concessionary rate of duty taxes.
Hence, the Collector Adjudication-I has issued a show-cause notice to the importer for justification of short payment of taxes/duties as soon as possible.
