ISLAMABAD: The Customs Appellate Tribunal has admitted an appeal filed by M/s Ericsson and M/s Warid Telecommunication (Private) Limited for regular hearing against the verdict of the Customs Adjudication.
According to details, Customs Adjudication has barred the tax authorities from recovering penalty of $5 million from both companies. The Customs Appellate Tribunal adjourned the hearing until January 19, 2016. Sources told Customs Today that both companies are facing charges of mis-declaration and tax evasion.
It is necessary to mention here that M/s Ericson is providing software to M/s Warid Telecommunication (Private) Limited and according to agreement signed between both companies M/s Ericsson is bound to provide software after clearance of customs and M/s Warid will pay duty and taxes applicable on import of software.
Sources said that according to import data M/s Warid declared the value of software as $6.33 million while its original value was $4.83 million. M/s Ericsson informed Customs Adjudication that difference in valuation amount is a typing mistake but the Customs Adjudication rejected M/s Ericsson stance. After this, M/s Ericsson imported the same CD of software from Lahore and cleared the same after payment of $4.83 million. When Customs Collectorates Islamabad received information that M/s Ericsson imported the software CD and cleared the same from Lahore, they filed an appeal in Customs Appellate Tribunal. The case will be heard on January 19, 2016.
