LAHORE: Customs Adjudication Lahore has imposed Rs 1 million fine on M/s Pak Elektron for evading taxes on the import of air conditioners and refrigerators illegally availing zero-rating under SRO 549 /(I) 2008.
The Customs Adjudication has upheld the charges levelled by Post Clearance Audit (PAC) directing M/s PEL to pay forthwith Rs 5.772 million, which includes the fine as well as the evaded tax.
According to the order, deputy director, PCA Lahore vide contravention report in a case number 03/2015 issued under endorsement C.NOPAC/LHR/Team-C/128/2014/130 dated January 26, 2015 are, that scrutiny of imports clearance made under SRO 549(I)2008 dated June 11, 2008 for the period 2009-2001 has revealed that certain importers had deliberately claimed/availed inadmissible benefit of zero rating of sales tax under the SRO on their import i.e. parts and components for the manufacturing of air conditioner/refrigerators etc.
It was said that the imported goods were neither plant, machinery, equipment nor parts thereof as mentioned in serial No 3 of SRO 549 (I)/ 2008 dated 11.06.2008.
Therefore benefit of zero rating sales tax under the SRO was not admissible on the import and the goods were, however, subject to payment of sales tax and withholding tax at statutory rates.
The adjudication assessed that due to wilful act of the importer sales tax and withholding tax was short paid on their clearance made of Rs 10.095 million, including sales tax Rs 8.99 million and income tax Rs 1.105 million.
