MULTAN: Collector Customs Adjudication has issued Order-in-Original against Commander Agro (Pvt) Limited in the tax evasion case of Rs 7.023 million.
Commander Agro (Pvt) Limited, manufacturers of pesticides, feed grades and agricultural by-products, was involved in miss-declaration on the import of Zinc sulphate worth Rs 25 million. The company commander Agro (Pvt) Limited had imported several consignments of zinc sulphate monohydrate 33% comprised of 800 bags of 25 kilogram each and net weight of import consignment was 20,000 kilogram. The import consignment of zinc sulphate monohydrate 33 percent use in the manufacturing of feed grade from China.
There were total 800 bags comprised of import consignments of zinc sulphate monohydrate out of which 400 bags of goods were in granule form and remaining 400 bags of import consignments were powder form.
Customs authorities released the import consignment of Commander Agro on the declared description, quantity and value after drawing two bags of samples from each powder and granule form for chemical examination at the time of clearance.
Two bags detained for chemical examination was drawn in front of company representatives, General Manager of Multan Dry Port, clearing agents and customs staff. Both import samples of powder and granules form were referred to Customs Laboratory for chemical examination.
The examination of Chemical report revealed that granules form was found zinc sulphate monohydrate and the powder form of samples does not confirm the zinc sulphate monohydrate during the chemical examination of imported consignments of zinc sulphate. Then Customs authorities of Multan Dry Port Trust again sent the chemicals for the examination to ascertain the nature of chemicals found in the powder form and chemical examination confirmed that Lambda-Cyhalothrin chemical was found that were being cleared garb of zinc sulphate.
In the light of chemical examination the detecting agency found that Commander Agro has cleared 1000 bags of Lambda-Cyhalothrin Chemical deliberately mis declared by evading customs duty of Rs 7.023 million under the garb of zinc sulphate monohydrate.
Owner of Commander Agro, Col (Retd)Rafiq has reacted in front of Collector during proceeding that there were two bags of Lambda-Cyhalothrin which had planted by Customs staff at the Multan Dry Port. The two detained bags which was inscribed in the Chinese language because he has submitted the payment of import consignment which also shows clear evident of import of zinc sulphate monohydrate instead of Lambda-Cyhalothrin.
Import record reveals that examination of the imported consignments that examiner clearly mentioned in the report during the passage of examination there were 400 bags of granule form and 400 bags of comprised of powder form in the import consignment at the time of examination and the pictures were also presented in the Customs Adjudication to support their evidences by Customs Staff. Clearing agent of Commander Agro Pvt. Limited also confirmed during hearing that import consignment was in two forms granule and powder form at the time of clearance.
Due to chemical examination of the imported chemical from Multan Dry Port the report reveals that from the chemical examination that Lambda-Cyhalothrin was present which have more than 95% component in the imported chemicals.
The chemicals examination of imported chemicals has recognized the charges of customs staff and Commander Agro had directed to pay the evaded amount of customs duty as the price of lambda-cyhalothrin was US $36 per kg while the price of zinc sulphate monohydrate was US $23 per kg so they have evaded the tax amount of almost Rs 7.023 million during import consignment of zinc sulphate. Commander Agro denied the mis-declaration at every stage but the facts were against them.
Based on the facts presented during hearing it established that the charges of tax evasion computed in the show cause notice against Commander Agro Pvt Limited has been established. Collector Customs Adjudication directed Commander Agro Pvt. Limited to pay Rs 7.023 million along with other leviable taxes and 35% fine under S.R.O 499(I) 2009 of the value of 400 bags of lambda-cyhalothrin.
Commander Agro Pvt Limited has already deposited Rs 7.023 million will be adjudged from deposited amount of tax. Commander Agro Pvt. Limited have been imposed penalty of Rs 50, 000 for the violation of Customs act under clause 14 of section 156 (I) of the customs act 1969.
