KARACHI: The Collectorate of Customs Adjudication-II has issued an Order-in-Original against M/s Huma Textile for under-invoicing in import of titanium dioxide under SRO 638(I)/2005 dated 27.6.2005, causing loss of Rs 931,429.
According to details, the Directorate of Post Clearance Audit, Customs Karachi, while scrutinizing data of importers relating of claiming of admissible/inadmissible concessions in taxes, found that the importer had illegally availed the benefits of concessionary rates under aforesaid SRO.
In the ONO, the Deputy Collector Customs Adjudication-II Muhammad Aftab stated that the importer M/s Huma Textile has intentionally and willfully caused a loss to the government exchequer by availing the benefits of SRO 638(I)/2005 dated 27.6.2005 which was evidently not admissible to them at the time of imports.
The ONO further states that the Model Customs Collectorate Appraisement (East) Karachi requested to re-adjudicate the case vide ONO No 58 of 2011 Manual 40 cases dated 19.10.2011. Hence, in compliance of the orders of the Honorable Tribunal, the present proceedings were initiated.
The case was fixed for hearing on 07.04.2015, 15.04.2015, 22.04.2015, 14.05.2015. The representative of the importer, Muhammad Zahid appeared for hearing on 22.04.2015 and requested for adjournment of two weeks which was granted accordingly.
However, neither any one appeared to attend the hearing nor any written reply was received from the respondent on subsequent date of hearings. The hearing notices were affixed on the notice board in terms of section 215 of the Customs Act, 1969. However no one appeared in the case.
In the ONO, the Deputy Collector-Adjudication-II directed the importer to pay the evaded revenue of Rs 931,429. However, in addition, a penalty of Rs 100,000 is also imposed for violation of Provision of Section 32(1)(2) & (3A) of the Customs Act, 1969, Section 3(1), section 3,6,&7 read with section 34 of Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under Section 33 (5) and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Act Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importer) and punishable under relevant provision of Income Tax Ordinance 2001 under clauses (14) and (14A) of Section 156(1) of Customs Act, 1969 on the exporter.
