KARACHI: Collectorate of Customs Adjudication-I Collector Abdul Basit Chaudhary has issued a show-cause notice to M/s Pakistan International Airlines for allegedly evading Rs 25 million by misusing SRO 575(I)/2006.
The Post Clearance Audit, Karachi in its report stated that M/s PIA Corporation is entitled to avail facility under Serial No. 29 of SRO 575 (I)/2006 dated June 5, 2006 that include aircraft spares parts, tyres, navigational equipment, accessories for maintenance and operations of aircraft, chemicals, lubricants and paints, air tickets, aircraft carpet, aircraft fabric, skydrol (brake fluid), laminated sheet, aluminum alloy sheets, aluminum alloy extrusions, aircraft seats, tools, test equipment, lift jackets, spares of TGS vehicle, meals trolley, ball hand seal, standard units, exterior washing liquid, air head set electronics, air head set pneumatic and sealants.
While on examination, the PCA found that thermal paper boarding cards and airway bills are not entitled to the benefit of SRO 575(I)/2006. However, in disregard to the above M/s PIA has not only claimed facility under S No 29 of SRO 575(I)/2006 in 42 GDs but has cleared the goods under wrong PCT 4821.9000 which is for paper and paper boards labels not printed, the PCA stated in the report.
The imported thermal boarding passes airway bills and tags are surely printed hence the same are correctly classifiable under PCT 4821.1090 at customs duty at 25 percent.
The PCA also alleged that the value is also under stated in majority cases. The value of goods as per statement if calculated at the assessed rate is Rs 60.842 million and the evaded customs duties come to Rs 15.21 million and differential sales tax Rs 5.904 million and differential income tax Rs 2.594 million and special federal excise duty Rs 608,425. The total evaded amount at the assessed rate comes to Rs 24.317 million.
The report was sent to the adjudication where, the collector issued a show-cause notice instructing the M/s PIA to submit its replies before him.
