KARACHI: The Customs’ Collectorate of Adjudication-II has served a show cause notice on M/s Jadeed Feeds Industries for allegedly evading taxes worth Rs 20.62 million on import of silos.
The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the PCA Directorate.
The importer M/s Jadeed Feeds Industries Pvt Ltd had imported Silos from the United States of America (USA) and 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, sources added.
The PCA instructed the importer to pay the short paid amount however no one turned up from importer’s side. Thus the adjudication proceeding has started with issuance of the show cause notice summoning the importer to appear in person or send their counsel to defend their case
