KARACHI: The Collector, Collectorate of Custom Adjudication-II, Ch Muhammad Javaid has issued Order-in-Original (OnO) against M/s Ejaz-ud-Din and Company for evading customs duty, sales tax and withholding tax to the tune of Rs 2.7 million by mis-declaring the goods.
According to the brief fact of the case as reported by Customs Collectorate of Appraisement (East), during the scrutiny of data the importers, relating to claiming of admissible, inadmissible concessions in taxes accorded vide notification SRO 1125 (1) 2011 dated 31-13-2011, it was found that M/s Ejaz-ud-Din and Company, gali no 1 Marriott Road Karachi has imported consignments of ‘Infusion Set with 100 ml Burette Blood Pack 500 ml’ vide good declaration bearing GD Nos KCSI-HC 13077 dated 28.01.2012 and KCSI-16589 dated 06.02.2012 through Customs Appraisement (East) Karachi and had illegally availed the benefit of concessionary rate of f sales tax and income tax under the aforesaid notification as the imported items are not covered the under the description ‘surgical goods’.
Therefore, these items are not covered under the claimed SRO 1125 (1) 2011 dated 31-13-2011; further the importer has not paid the customs duty which is also payable by them. It may be mentioned that the concessions offered vide said SRO are only admissible to manufacturers of goods covered n the five sectors only as highlighted in the conditions given in the said notification, it added.
On further analysis, it transpired that the status of M/s Ejaz-ud-Din and Company is that of an importer and the concern was not registered as a manufacturer at the time of subject imports. Therefore an amount Rs 3.5 million has been short paid evaded by the importers on account of custom duty, sales tax and withholding tax.
Blood bags in aluminum foil with set and hence entitled for exemption of custom duty vide S.No category D of Table III of the SRO 567(1) 2006 dated 05-06-2006 therefore demand of custom duty is nosy justified the concessionary rate of income tax is available only to the goods covered under SRO 1125 (1) 2011 dated 31-13-2011 and as the subject goods are not covered under SRO 1125 (1) 2011 dated 31-13-2011 therefore income tax will be chargeable at the statutory rate applicable on such goods and the amount of Rs 617495 will be recoverable on account of income tax.
Moreover, as the respondent has tried top claim exemption concession under the SROs mentioned above for which he was not entitled therefore he is also found guilty of mis declaration in the light of afore stated facts the charges levied in the show cause notice are parts established M/s Ejaz-ud-din and company violated the provisions of Section 32 (1) & 3(A)of the Custom Act 1969 Section 3(1) Section 3(6) and 7 read with section 34 of the Sales Tax Act 1990 and section 148 of the Income Tax Ordinance 2001 and is ordered to immediately deposit the short paid amount of Rs 2650617 including Sales tax amounting to Rs 2033122 and WHT amounting to Rs 617495 in to the government treasury penalty of Rs 50000 is also imposed on the respondent M/s Ejaz-ud-din and company by the Collector.
