KARACHI: The Collectorate of Customs Adjudication-II on Tuesday issued a show-cause notice to M/s Moon Steel in connection with alleged tax evasion under the head of additional sales tax and income tax of Rs 220,654 by misusing the SRO 1125(I)2011.
Importer M/s Moon Steel, importing a consignment of various types of cables and scrap on November 12, 2017 worth Rs 4 million through Goods Declarations KAPD-25874-2541896, under Section 3,4,9,7A,(4b),46,47 and 72 of the Sales Tax Act-1990 which further read with the Section 149 of the Income Tax Ordinance-2001, punishable under clauses (21) of Section 156(1) of the Customs Act-1969 read with Section 68 and 79 of the Sales Tax Act-1990.
The Directorate of Intelligence & Investigation Customs Karachi in its contravention report stated that the said importer misused SRO 1125 (I)/2011 by clearing the import of different kinds of cables and scrapes. Neither their manufacturing unit existed on the notified business addresses nor was there any manufacturing facility. So the said company caused the national kitty a huge loss.
Therefore non-existence of the unit was an ample proof to establish beyond any doubt that the importer’s previous clearance as manufacturer under SRO 1125(I)/2011 availed exemption of taxes to the extent of 6 percent as AST and 3 percent as Income Tax were quite illegal and unlawful.
