KARACHI: Collector, Collectorate of Customs Adjudication-II, Chaudhary Muhammad Javaid has issued a show-cause notice to M/s Kinjhar International for Rs 200,000 evasion of taxes, duties on import of outdoor LED floodlights, projector lamps and LED streetlights by availing undue benefits of fifth and sixth schedule.
As per details, the PCA, while auditing import data, found that importer M/s Kinjhar International imported declared to be “Outdoor LED floodlights, projector lamp and outdoor LED streetlights” through Customs Appraisement West, and claimed the benefits of fifth schedule, sixth schedule.
The sources said that the exemptions are only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies as per notification mentioned above. Whereas, clause 77 part-IV Second Schedule of Income Tax Ordinance, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only.
The examination staff in their examination report has not confirmed that the imported LED Lights are for solar use. It appears from the examination report that the imported items are for general use as these are operative / works under the normal thermal / hydral power sources normally used in Pakistan.
The images scanned by the examination staff and examination report shows goods are operative at voltage as 85 – 265 volts, which is the standard voltage of 240 volts used in Pakistan produced by hydra / fuel based power. It is an undeniable proof that the imported goods are not meant for to work / operate with the renewable energy sources like solar energy or wind energy.
Further it transpires that the imported goods operate on alternating current (AC) voltage rather than on direct current (DC) which is used / and operate in the renewable energy technologies. Therefore, the concessions under the claimed notifications are not available to the subject imports.
Therefore, importer M/s Kinjhar International, Karachi, has been called upon to show cause notice to justify their position.
