KARACHI: M/s Islamabad Feed Private Limited has been issued a show-cause notice by the Customs Adjudication-II for evading taxes and duties of Rs 16.49 million on import of silos.
As per details, the importer M/s Islamabad Feeds imported silos from the United States and availed concession of 8th Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of “Grain storage silos with all standard accessories” under PCT Heading 9406.0030.
The 8th Schedule (sales tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the Silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to sales tax at 17 percent.
Collector Adjudication-II has issued a show cause notice to the importer directing the importer to either justify their position or pay off the short-paid levy at the earliest.
