KARACHI: Collectorate of Customs Adjudication-I Collector Dr Wasif Memon while issuing an Order-in-Original (ONO) has directed M/s Al-Hamza Flour Mills (Private) Limited to pay evaded taxes to the tune of Rs 4.43 million on the import of silos.
The collector has issued ONO No. 439 against the company and also imposed a fine of Rs 200,000 for availing undue benefits.
As per details, the importer M/s Al-Hamza Flour Mills had imported silos from the United States of America (USA) with Goods Declaration (GD) No. KPPI-HC-15368 dated September 18, 2014 and GD KPPI-HC-12275 dated September 9, 2014.
On the time of import, it 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 the silos are for storage purposes and do not qualifies the definition of machinery and equipments. 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 couple of hearings, the importer failed to justify their concession availed resultantly the Adjudication-I collector directed the importer to pay the evaded amount besides a penalty of Rs 200,000 has also been imposed.
